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M.240 An Aid to Accountancy—CBSE XII

Dr. STOCK OF MEDICINES ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 90,000 By Income and Expenditure A/c (Balancing Figure) 6,09,000
To Creditors for Medicines A/c 6,43,000 (Medicines Consumed)
(Medicines Purchased) By Balance c/d 1,24,000
7,33,000 7,33,000

Amount of Medicines to be debited to Income and Expenditure Account = ` 6,09,000.
Alternative Method: Amount of medicines to be debited to Income and Expenditure
Account can be determined in the following manner:
Particulars `

Amount paid to Creditors for Medicines 6,79,000
Add: Opening Stock of Medicines 90,000
Closing Creditors for Medicines 2,04,000 2,94,000
9,73,000
Less: Closing Stock of Medicines 1,24,000
Opening Creditors for Medicines 2,40,000 3,64,000
Amount of Medicines to be debited to Income and Expenditure A/c 6,09,000

11. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

2018
June 12 A’s Capital A/c (` 1,62,000 × 5/9) ...Dr. 90,000
C’s Capital A/c (` 1,62,000 × 4/9) ...Dr. 72,000
To B’s Capital A/c (` 5,40,000 × 3/10) 1,62,000
(Being the treatment of goodwill on death of B)
A’s Capital A/c (` 43,740 × 5/9) ...Dr. 24,300
C’s Capital A/c (` 43,740 × 4/9) ...Dr. 19,440
To B’s Capital A/c 43,740
(Being B’s share of profit till the time of his death)

Working Notes:
1. Calculation of Gain/(Sacrifice) of each Partner:
A B C
2 1
I. New Share —
3 3
5 1 3 2 1
II. Old Share or or
10 2 10 10 5
1 Ê 3 ˆ 2
III. Gain/(Sacrifice) (I – II) Á ˜
6 Ë 10 ¯ 15
(Gain) (Sacrifice) (Gain)

1 2 5 4
Thus, Gaining Ratio between A and C = : = : = 5: 4.
6 15 30 30