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M.142 An Aid to Accountancy—CBSE XII

Or

Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Machinery A/c 2,350 By Stock A/c 2,500
To Provision for Doubtful Debts A/c 975 By Building A/c 2,250
To Workmen Compensation Claim A/c 825
To Gain (Profit) transferred to:
X’s Capital A/c 300
Y’s Capital A/c 200
Z’s Capital A/c 100 600
4,750 4,750

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X (`) Y (`) Z (`) Particulars X (`) Y (`) Z (`)
To Y’s Capital A/c 900 ... 2,100 By Balance b/d 20,000 15,000 12,500
To Y’s Loan A/c ... 20,200 ... By General Reserve A/c 3,000 2,000 1,000
To Balance c/d 22,400 ... 11,500 By Revaluation A/c 300 200 100
By X’s Capital A/c ... 900 ...
By Z’s Capital A/c ... 2,100 ...
23,300 20,200 13,600 23,300 20,200 13,600

BALANCE SHEET as at 31st March, 2018
Liabilities ` Assets `
Creditors 9,500 Cash at Bank 1,250
Bills Payable 2,500 Debtors 8,000
Y’s Loan A/c 20,200 Less: Provision for Doubtful Debts 1,225 6,775
Provision for Workmen Compensation Claim 825 Stock 15,000
Capital A/cs: Machinery 19,150
X 22,400 Building 24,750
Z 11,500 33,900
66,925 66,925

Working Notes:
1. Calculation of Gaining Ratio: Gain = New Share – Old Share

3 3 3 2 1 7
X’s Gain = - = ; Z’s Gain = - =
5 6 30 5 6 30
Thus, Gaining Ratio = 3 : 7.
2. Adjustment of Goodwill:
1
Y’s Share of Goodwill = of ` 9,000 = ` 3,000, which is contributed by X and Z in their gaining ratio, i.e., 3 : 7.
3
17. JOURNAL OF STAR LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 16,00,000
To Equity Shares Application A/c 16,00,000
(Being the application money received)