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M.18 An Aid to Accountancy—CBSE XII
Or

Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Stock A/c 1,150 By Provision for Doubtful Debts A/c 2,000
To Furniture A/c 1,500 By Loss transferred to:
To Outstanding Bill for Repairs A/c 1,000 A’s Capital A/c 990
B’s Capital A/c 660 1,650
3,650 3,650

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)
To Revaluation A/c 990 660 ... By Balance b/d 35,000 30,000 ...
To Investments A/c 6,000 4,000 ... By General Reserve A/c 6,000 4,000 ...
To Balance c/d 40,310 30,040 23,450 By Prem. for Goodwill A/c 6,300 700 ...
By Cash A/c (WN 2) ... ... 23,450
47,300 34,700 23,450 47,300 34,700 23,450

BALANCE SHEET OF A, B AND C
as at 1st April, 2018
Liabilities ` Assets `
Capital A/cs: Machinery 33,000
A 40,310 Furniture 13,500
B 30,040 Investments 10,000
C 23,450 93,800 Stock 21,850
Creditors 36,000 Debtors 19,000
Outstanding Bill for Repairs 1,000 Cash (WN 3) 33,450
1,30,800 1,30,800

Working Notes:

1. Calculation of Sacrificing Ratio:
3 3 3 2 1 7
A’s Sacrifice = - = ; B’s Sacrifice = - = . Thus, Sacrificing Ratio of A and B = 9 : 1.
5 6 30 5 6 30
2. Calculation of C’s Capital:
Combined Capital of A and B (after all adjustments) for 3/4 share = ` 40,310 + ` 30,040 = ` 70,350.
It means, Firm’s Total Capital = ` 70,350 × 4/3 = ` 93,800.
C’s Capital = ` 93,800 × 1/4 = ` 23,450.

3. Dr. CASH ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 12,000 By Bank Loan A/c 9,000
To Premium for Goodwill A/c 7,000 By Balance c/d 33,450
To C’s Capital A/c 23,450
42,450 42,450