Page 178 - AAAXII

Model Test Papers M.169

Or

Dr. PAWAN’S CAPITAL ACCOUNT Cr.
Particulars ` Particulars `
To Drawings A/c 20,000 By Balance b/d 80,000
To Pawan’s Executor’s A/c 1,50,800 By Profit and Loss Suspense A/c (WN 1) 6,000
(Balancing Figure) By Puneet’s Capital A/c (WN 2) 30,000
By Pankaj’s Capital A/c (WN 2) 30,000
By Interest on Capital A/c 4,800
(` 80,000 × 12/100 × 6/12)
By Reserve A/c (` 1,00,000 × 1/5) 20,000
1,70,800 1,70,800

Dr. PAWAN’S EXECUTOR’S ACCOUNT Cr.
Date Particulars ` Date Particulars `

2017 2017
Sept. 30 To Bank A/c 30,800 Sept. 30 By Pawan’s Capital A/c 1,50,800
2018 2018
March 31 To Balance c/d 1,27,200 March 31 By Interest A/c 7,200
(` 1,20,000 × 12/100 × 6/12)
1,58,000 1,58,000
2018 2018
Sept. 30 To Bank A/c 74,400 April 1 By Balance b/d 1,27,200
(` 60,000 + ` 7,200 + ` 7,200) Sept. 30 By Interest A/c 7,200
(` 1,20,000 × 12/100 × 6/12)
2019 2019
March 31 To Balance c/d 63,600 March 31 By Interest A/c 3,600
(` 60,000 × 12/100 × 6/12)
1,38,000 1,38,000
2019 2019
Sept. 30 To Bank A/c 67,200 April 1 By Balance b/d 63,600
(` 60,000 + ` 3,600 + ` 3,600) Sept. 30 By Interest A/c 3,600
(` 60,000 × 12/100 × 6/12)
67,200 67,200

Working Notes:
1. Calculation of Pawan’s Share of Profit (from the date of Balance Sheet till date of death):
Pawan’s Share of Profit = Last Year’s Profit × Proportionate Period × Share of Deceased Partner
6 1
= ` 60,000 × ¥ = ` 6,000.
12 5
2. Calculation of Pawan’s Share of Goodwill:
+ 1,00,000 `
` 1,60,000 ` + 80,000 `
+ 60,000
`
Average Profit = = 1,00,000
4
Firm’s Goodwill = Average Profit × No. of Years’ Purchase
= ` 1,00,000 × 3 = ` 3,00,000
1
Pawan’s Share of Goodwill = ` 3,00,000 × = ` 60,000, which is contributed by Puneet and Pankaj in their
gaining ratio of 2 : 2 or 1 : 1. 5