Page 169 - AAAXII

M.160 An Aid to Accountancy—CBSE XII

AN EXTRACT OF BALANCE SHEET as at 31st March, 2018
Liabilities ` Assets `
Subscription Received in Advance 3,000 Subscription Receivable
Or
Subscription Outstanding:
For 2016–17 1,500
For 2017–18 11,000 12,500

11. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Goodwill A/c ...Dr. 2,16,000
To Ram’s Capital A/c 96,000
To Shyam’s Capital A/c 72,000
To Rahim’s Capital A/c 48,000
(Being the goodwill raised in the books at full value crediting all
partners in their old profit-sharing ratio, i.e., 4 : 3 : 2)
Ram’s Capital A/c ...Dr. 1,35,000
Rahim’s Capital A/c ...Dr. 81,000
To Goodwill A/c 2,16,000
(Being the goodwill written-off by debiting the remaining
partners in their new ratio, i.e., 5 : 3)
(ii) Goodwill A/c* ...Dr. 72,000
To Shyam’s Capital A/c 72,000
(Being Shyam’s share of goodwill raised)
Ram’s Capital A/c ...Dr. 39,000
Rahim’s Capital A/c ...Dr. 33,000
To Goodwill A/c 72,000
(Being Shyam’s share of goodwill written-off by debiting the
remaining partners in their gaining ratio of 13 : 11) (WN)
*Shyam’s share of Goodwill = ` 2,16,000 × 3/9 = ` 72,000.
Working Note:
Calculation of Gaining Ratio:
Partners New Share Old Share Sacrifice/(Gain) Gaining Ratio
Ram 5/8 4/9 5/8 – 4/9 = 13/72 (Gain) Ram : Rahim
Shyam ... 3/9 0 – 3/9 = –3/9 (Sacrifice) 13/72 : 11/72
Rahim 3/8 2/9 3/8 – 2/9 = 11/72 (Gain) 13 : 11
12. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2017
March 31 Profit and Loss Appropriation A/c ...Dr. 4,00,000
To X’s Capital A/c (` 4,00,000 × 12/25) 1,92,000
To Y’s Capital A/c (` 4,00,000 × 8/25) 1,28,000
To Z’s Capital A/c (` 4,00,000 × 5/25) 80,000
(Being the distribution of profit as if there is no guarantee)
X’s Capital A/c ...Dr. 12,000
Y’s Capital A/c ...Dr. 8,000
To Z’s Capital A/c 20,000
(Being the deficiency in Z’s share met by guaranteeing patners)