Page 332 - AAAXII

Model Test Papers M.317

10. AN EXTRACT OF BALANCE SHEET OF ARVIND LTD. as at...

Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 42,00,000

Note to Accounts
Particulars `
1. Share Capital
Authorised Capital
60,000 Equity Shares of ` 150 each 90,00,000
Issued Capital
30,000 Equity Shares of ` 150 each 45,00,000
Subscribed Capital
Subscribed and Fully paid-up
28,000 Equity Shares of ` 150 each 42,00,000

11. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
X’s Capital A/c ...Dr. 30,000
Y’s Capital A/c ...Dr. 20,000
To Investments A/c 50,000
(Being half of the investments taken over by partners in their profit-sharing ratio)
Investments A/c ...Dr. 12,500
To Revaluation A/c 12,500
(Being the gain due to revaluation of investment recorded)
Revaluation A/c ...Dr. 12,500
To X’s Capital A/c 7,500
To Y’s Capital A/c 5,000
(Being the gain (profit) of revaluation distributed)

12. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
X’s Capital A/c ...Dr. 22,500
Z’s Capital A/c ...Dr. 7,500
To Y’s Capital A/c 30,000
(Being the share of goodwill of Y adjusted) (WN 1)
Profit and Loss Suspense A/c ...Dr. 20,000
To Y’s Capital A/c 20,000
(Being the share of profit till date of death credited) (WN 2)

Working Notes:
1. Calculation of Y’s Share of Goodwill:
Goodwill of the Firm = ` 90,000
Y’s Share of Goodwill = ` 90,000 × 1/3 = ` 30,000, which will be contributed by X and Z in their gaining ratio, i.e., 3 : 1.
2. Calculation of Y’s Estimated share of Profit till date of death = ` 2,40,000 × 3/12 × 2/6 = ` 20,000.