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M.218 An Aid to Accountancy—CBSE XII

Dr. ANIL’S EXECUTOR’S ACCOUNT Cr.
Particulars ` Particulars `
To Cash A/c 39,750 By Anil’s Capital A/c 79,500
To Balance c/d 39,750
79,500 79,500

Working Notes:
1. Calculation of Anil’s Share of Goodwill:
`13,000 + `12,000 + ` 20,000 + `15,000
Average Profit = = ` 15,000
4

Goodwill = `15,000 ¥ 5 = ` 37,500
2
5
Anil’s Share of Goodwill = ` 37,500 × = ` 18,750.
10
` 18,750 will be contributed by Bhanu and Chandu in Gaining Ratio, i.e., 3 : 2.
2. Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Patents A/c 3,000 By Building A/c 50,000
To Machinery A/c 2,000
To Gain (Profit) transferred to:
Anil’s Capital A/c 22,500
Bhanu’s Capital A/c 13,500
Chandu’s Capital A/c 9,000 45,000
50,000 50,000

3. Anil’s share of Profit till date of death:
`15,000
Expected Profit for 6 months = = ` 7,500
2
5
Anil’s Share of Profit = ` 7,500 × = ` 3,750.
10
Or
(a) JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2015
Feb. 1 Vrinda’s Capital A/c ...Dr. 60,000
To Ghanshyam’s Capital A/c 60,000
(Being Ghanshyam’s share of goodwill adjusted by debiting gaining
partner (Vrinda) and crediting deceased partner (Ghanshyam))
Vrinda’s Capital A/c ...Dr. 18,750
To Ghanshyam’s Capital A/c 18,750
(Being Ghanshyam’s share of profit till the date of death adjusted by
debiting gaining partner (Vrinda))
Working Notes:
1. Calculation of Ghanshyam’s Share of Goodwill:
Total profit of last four years = ` 1,20,000 + ` 80,000 + ` 40,000 + ` 80,000 = ` 3,20,000
Ghanshyam’s share in last four years’ profit = ` 3,20,000 × 3/8 = ` 1,20,000
Ghanshyam’s share of Goodwill = ` 1,20,000 × 1/2 = ` 60,000.