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M.246 An Aid to Accountancy—CBSE XII

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)
To Revaluation A/c (Loss) 25,000 15,000 10,000 By Balance b/d 2,00,000 1,00,000 80,000
To B’s Capital A/c (Goodwill) 19,000 ... 38,000 By General Reserve A/c 15,000 9,000 6,000
To Bank A/c ... 1,51,000 ... By A’s Capital A/c ... 19,000 ...
To Balance c/d (WN 3) 2,16,000 ... 1,44,000 (Goodwill)
By C’s Capital A/c ... 38,000 ...
(Goodwill)
By Bank A/c (Bal. Fig.) 45,000 ... 1,06,000
2,60,000 1,66,000 1,92,000 2,60,000 1,66,000 1,92,000

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 20,000 By B’s Capital A/c 1,51,000
To A’s Capital A/c 45,000 By Balance c/d 20,000
To C’s Capital A/c 1,06,000
1,71,000 1,71,000

BALANCE SHEET OF A AND C as at 31st March, 2018
Liabilities ` Assets `
Sundry Creditors 53,000 Fixed Assets 3,00,000
Outstanding Expenses 7,000 Stock 10,000
Outstanding Rent 1,900 Book Debts 90,000
Capital A/cs: Prepaid Insurance Premium 1,900
A 2,16,000 Cash at Bank 20,000
C 1,44,000 3,60,000
4,21,900 4,21,900
Working Notes:
1. Calculation of Gaining Ratio:
Gain of a Partner = New Share – Old Share
3 5 1 2 2 2
A = - = ; C = - = ; Thus, Gaining Ratio of A and C = 1 : 2.
5 10 10 5 10 10
2. Adjustment of Goodwill:
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B’s Share of Goodwill = × ` 1,90,000 = ` 57,000, which will be contributed by A and C in their Gaining
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Ratio, i.e., 1 : 2.
3. Adjustment of Capital: `
Amount Payable to B 1,51,000
Adjusted Capital of A 1,71,000
Adjusted Capital of C 38,000
Total Capital of New Firm 3,60,000
Thus, Capitals of A and C in new Firm would be in new ratio, i.e., 3 : 2.
3
A’s Capital in New Firm = ` 3,60,000 × = ` 2,16,000;
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2
C’s Capital in New Firm = ` 3,60,000 × = ` 1,44,000.
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