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Model Test Papers M.17

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)

To Goodwill A/c 6,000 4,000 2,000 By Balance b/d 40,000 40,000 30,000
To B’s Capital A/c 2,400 ... 5,600 By General Reserve A/c 6,000 4,000 2,000
To Cash A/c ... 48,200 ... By Revaluation A/c 300 200 100
To Balance c/d 66,360 ... 44,240 By A’s Capital A/c ... 2,400 ...
By C’s Capital A/c ... 5,600 ...
By Cash A/c 28,460 ... 19,740
74,760 52,200 51,840 74,760 52,200 51,840

BALANCE SHEET OF A AND C
as at 1st April, 2018
Liabilities ` Assets `

Creditors 24,000 Cash in Hand (WN 3) 18,000
Bills Payable 16,000 Debtors 21,000
Outstanding Claim for Damages 1,100 Stock 16,200
Capital A/cs: Furniture 28,500
A 66,360 Machinery 64,600
C 44,240 1,10,600 Prepaid Insurance 3,400

1,51,700 1,51,700

Working Notes:

1. Calculation of Gaining Ratio:
3 3 3 2 1 7
A’s Gain = - = ; C’s Gain = - =
5 6 30 5 6 30
Thus, Gaining Ratio = 3 : 7.
2. Total Capital of New Firm = Adjusted Capital of All Partners
= ` 37,900 (A) + ` 48,200 (B) + ` 24,500 (C) = ` 1,10,600
Capital contribution in new firm: A = ` 1,10,600 × 3/5 = ` 66,360, C = ` 1,10,600 × 2/5 = ` 44,240

Thus, Amount brought by A = ` 28,460, Amount brought by C = ` 19,740; Amount paid to B = ` 48,200.

3. Dr. CASH ACCOUNT Cr.
Particulars ` Particulars `

To Balance b/d 18,000 By B’s Capital A/c 48,200
To A’s Capital A/c 28,460 By Balance c/d 18,000
To C’s Capital A/c 19,740
66,200 66,200