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M.344 An Aid to Accountancy—CBSE XII

13. JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
2018
Sept. 1 General Reserve A/c ...Dr. 28,000
To Rani’s Capital A/c 14,000
To Adi’s Capital A/c 6,000
To Manu’s Capital A/c 8,000
(Being the General Reserve distributed among all partners)
Manu’s Capital A/c ...Dr. 40,000
To Loan to Manu A/c 40,000
(Being the Loan to Manu debited to his Capital A/c)
Interest on Capital A/c ...Dr. 2,167
To Manu’s Capital A/c 2,167
(Being the interest on Manu’s capital credited to his Capital A/c)
Rani’s Capital A/c ...Dr. 28,000
Adi’s Capital A/c ...Dr. 12,000
To Manu’s Capital A/c 40,000
(Being the Manu’s share of goodwill adjusted)
Profit and Loss Suspense A/c ...Dr. 32,000
To Manu’s Capital A/c 32,000
(Being the Manu’s share of profit credited to his Capital A/c)
Manu’s Capital A/c ...Dr. 1,07,167
To Manu’s Executors’ A/c 1,07,167
(Being the amount due to Manu’s Executors)
Dr. MANU’S CAPITAL ACCOUNT Cr.
Particulars ` Particulars `
To Loan to Manu A/c 40,000 By Balance b/d 65,000
To Manu’s Executors’ A/c 1,07,167 By General Reserve A/c 8,000
(Balancing Figure) By Interest on Capital A/c 2,167
By Profit and Loss Suspense A/c 32,000
By Rani’s Capital A/c 28,000
By Adi’s Capital A/c 12,000
1,47,167 1,47,167
Working Notes:
1. Calculation and Adjustment of Goodwill:
Goodwill = Super Profit × Number of Years’ Purchase
= ` 70,000 × 2 = ` 1,40,000
4
Manu’s Share of Goodwill = of ` 1,40,000 = ` 40,000, which will be contributed by Rani and Adi in
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their gaining ratio, i.e., 7 : 3.
7
Thus, Rani’s Contribution = × ` 40,000 = ` 28,000;
10
3
Adi’s Contribution = × ` 40,000 = ` 12,000.
10
2,24,000 4
2. Manu’s Share of Profit = ¥ 4,00,000` ¥ = 32,000.`
8,00,000 14