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Model Test Papers M.193

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Raghu Rishu Rishabh Particulars Raghu Rishu Rishabh
` ` ` ` ` `

To Bank A/c 51,000 81,900 ... By Balance b/d 1,19,000 1,12,000 ...
(Bal. Fig.) By Revaluation A/c 7,400 ... ...
To Balance c/d (WN 3) 1,00,000 50,000 50,000 By Revaluation A/c (Gain) 18,000 12,000 ...
By Investments Fluctuation
Reserve A/c 2,400 1,600 ...
By Bank A/c ... ... 50,000
By Premium for Goodwill A/c 4,200 6,300 ...
(WN 2)
1,51,000 1,31,900 50,000 1,51,000 1,31,900 50,000

BALANCE SHEET OF NEW FIRM
as at 31st March, 2018
Liabilities ` Assets `
Creditors (` 86,000 – ` 10,800) 75,200 Cash in Hand 2,000
Employees’ Provident Fund 10,000 Cash at Bank (WN 4) 2,600
Capital A/cs: Debtors 42,000
Raghu 1,00,000 Investments 21,000
Rishu 50,000 Building 1,17,600
Rishabh 50,000 2,00,000 Plant and Machinery 1,00,000

2,85,200 2,85,200

Working Notes:
1. Calculation of Sacrificing Ratio:
Sacrifice = Old Share – New Share
3 2 12 -10 2
Raghu = - = =
5 4 20 20
-
2 1 85 3
Rishu = - = =
5 4 20 20
2 3
Sacrificing Ratio of Raghu and Rishu = : or 2 : 3.
20 20
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2. Rishabh’s Share of Goodwill = ` 42,000 × = ` 10,500, which will be distributed between Raghu and Rishu in their
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sacrificing ratio, i.e., 2 : 3.
3. Calculation of Adjusted Capitals:
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Total Capital of the New firm on the basis of Rishabh’s Capital = ` 50,000 × = ` 2,00,000
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2
Raghu’s Capital in New Firm = ` 2,00,000 × = ` 1,00,000;
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1
Rishu’s Capital in New Firm = ` 2,00,000 × = ` 50,000.
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