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M.348 An Aid to Accountancy—CBSE XII

Or
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Vehicles A/c 19,000 By Stock A/c 24,000
To Gain (Profit) transferred to: By Building A/c 25,000
X’s Capital A/c 15,000
Y’s Capital A/c 10,000
Z’s Capital A/c 5,000 30,000
49,000 49,000
Dr. PARTNERS’ CAPTIAL ACCOUNTS Cr.
Particulars X (`) Y (`) Z (`) Particulars X (`) Y (`) Z (`)
To Profit and Loss A/c 22,500 15,000 7,500 By Balance b/d 2,40,000 2,00,000 1,60,000
To Y’s Capital A/c 15,000 ... 35,000 By Revaluation A/c 15,000 10,000 5,000
To Y’s Loan A/c ... 2,45,000 ... (Gain)
To Balance c/d 3,60,000 ... 2,40,000 By X’s Capital A/c ... 15,000 ...
By Z’s Capital A/c ... 35,000 ...
By Cash A/c (Bal. Fig.) 1,42,500 ... 1,17,500
3,97,500 2,60,000 2,82,500 3,97,500 2,60,000 2,82,500

BALANCE SHEET OF THE NEW FIRM as at 1st April, 2018
Liabilities ` Assets `
Capital A/cs: Cash 2,75,000
X 3,60,000 Debtors 70,000
Z 2,40,000 6,00,000 Stock 2,54,000
Y’s Loan 2,45,000 Vehicles 1,71,000
Bills Payable 80,000 Building 2,75,000
Creditors 1,20,000
10,45,000 10,45,000

Working Notes:
1. Calculation of Gaining Ratio:
X Y Z
I. New Share 3/5 — 2/5
II. Old Share 3/6 2/6 1/6
III. Gain/(Sacrifice) (I – II) 3/30 –2/6 7/30
3 7
Thus, Gaining Ratio of X and Z = : = 3: 7.
30 30
2. Adjustment of Goodwill:
2
Y’s Share of Goodwill = × ` 1,50,000 = ` 50,000, which will be contributed by X and Z in their gaining ratio.
6
3
Thus, X’s Contribution = of ` 50,000 = ` 15,000;
10
7
Z’s Contribution = of ` 50,000 = ` 35,000.
10
3. Adjustment of Capital:
Total Capital of New Firm = ` 6,00,000, which will be contributed by X and Z in their new ratio, i.e., 3 : 2.
3
Thus, X’s Capital in New Firm = of ` 6,00,000 = ` 3,60,000;
5
2
Z’s Capital in New Firm = of ` 6,00,000 = ` 2,40,000.
5