Page 147 - AAAXII

Model Test Papers M.139

(iii) Share of Accumulated Loss
X’s Capital A/c ...Dr. 64,000
Y’s Capital A/c ...Dr. 64,000
Z’s Capital A/c ...Dr. 32,000
To Profit and Loss A/c 1,60,000
(Being the adjustment of loss)
(iv) Share of Loss (Till date of death)
Y’s Capital A/c ...Dr. 16,000
To Profit and Loss Suspense A/c 16,000
(Being the expected share of loss of Y adjusted)
(v) Y’s Capital A/c ...Dr. 2,80,000
To Y’s Executor’s A/c 2,80,000
(Being the amount payable to Y transferred)

Dr. Y’S CAPITAL ACCOUNT Cr.
Particulars ` Particulars `
To Profit and Loss A/c (` 1,60,000 × 2/5) 64,000 By Balance b/d 3,00,000
To Profit and Loss Suspense A/c (Note 2) 16,000 By General Reserve A/c (` 30,000 × 2/5) 12,000
To Y’s Executors’ A/c (Balancing Figure) 2,80,000 By X’s Capital A/c—Goodwill (Note 1) 32,000
By Z’s Capital A/c—Goodwill (Note 1) 16,000
3,60,000 3,60,000

Notes:

1. Firm’s Goodwill = [(` 50,000 + ` 80,000 + ` 1,10,000 + ` 2,20,000 – ` 1,60,000)/5] × 2 = ` 1,20,000.
Y’s Share of Goodwill = ` 1,20,000 × 2/5 = ` 48,000, which is contributed by X and Z in their gaining
ratio, i.e., 2 : 1.
2. Share of Loss till the date of death = ` 1,60,000 × 3/12 × 2/5 = ` 16,000.

15. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Realisation A/c ...Dr. 2,600
To A’s Capital A/c 2,600
(Being the realisation expenses paid by A)
(ii) No Entry
(iii) Cash/Bank A/c ...Dr. 3,500
To Realisation A/c 3,500
(Being the unrecorded asset realised)
(iv) Cash/Bank A/c ...Dr. 79,000
To Realisation A/c 79,000
(Being the assets realised)
(v) General Reserve A/c ...Dr. 6,000
To A’s Capital A/c 2,000
To B’s Capital A/c 2,000
To C’s Capital A/c 2,000
(Being the reserve distributed)
(vi) Realisation A/c ...Dr. 5,000
To Cash/Bank A/c 5,000
(Being the dishonoured bill paid)