Page 334 - AAAXII

Model Test Papers M.319

Dr. PROFIT AND LOSS APPROPRIATION ACCOUNT for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To Y’s Salary A/c 25,000 By Net Profit transferred from
To Interest on Capital A/cs: Profit and Loss A/c 1,42,500
X 30,000
Y 18,000 48,000
To Profit transferred to:
X’s Capital A/c 41,700
Y’s Capital A/c 27,800 69,500
1,42,500 1,42,500
Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X (`) Y (`) Particulars X (`) Y (`)
To Balance c/d 5,71,700 3,70,800 By Balance b/d 5,00,000 3,00,000
By Profit and Loss Appropriation A/c:
Interest on Capital 30,000 18,000
Salary ... 25,000
Profit 41,700 27,800
5,71,700 3,70,800 5,71,700 3,70,800

(b) Average Profit = ` 7,20,000/3 = ` 2,40,000
Normal Profit = ` 10,00,000 × 15/100 = ` 1,50,000
Super Profit = Average Profit – Normal Profit
= ` 2,40,000 – ` 1,50,000 = ` 90,000
Goodwill = ` 90,000 × 3 = ` 2,70,000.
Or
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2018
April 1 X’s Capital A/c (` 60,000 × 1/6) ...Dr. 10,000
To Z’s Capital A/c (` 60,000 × 1/6) 10,000
(Being the adjustment made for goodwill on change
in profit-sharing ratio)
X’s Capital A/c (` 60,000 × 1/6) ...Dr. 10,000
To Z’s Capital A/c (` 60,000 × 1/6) 10,000
(Being the adjustment made for General Reserve)
X’s Capital A/c (` 1,20,000 × 1/6) ...Dr. 20,000
To Z’s Capital A/c (` 1,20,000 × 1/6) 20,000
(Being the adjustment made for gain (profit) on revaluation on
change in profit-sharing ratio)

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X Y Z Particulars X Y Z
` ` ` ` ` `
To Z’s Capital A/c 10,000 ... ... By Balance b/d 2,50,000 2,00,000 1,50,000
To Z’s Capital A/c 10,000 ... ... By X’s Capital A/c ... ... 10,000
To Z’s Capital A/c 20,000 ... ... By X’s Capital A/c ... ... 10,000
To Balance c/d 2,10,000 2,00,000 1,90,000 By X’s Capital A/c ... ... 20,000
2,50,000 2,00,000 1,90,000 2,50,000 2,00,000 1,90,000