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M.370 An Aid to Accountancy—CBSE XII

Working Notes:
1. Calculation of Gain/Sacrifice of Share:
New Share Old Share Difference
1 2 1 2 34 Ê ˆ 1
-
A - = = Á ˜ Sacrifice
2 3 2 3 6 Ë ¯
6
-
1 1 1 1 32 1
B - = = Gain
2 3 2 3 6 6
2. Adjustment of Goodwill:
A is sacrificing partner and B is Gaining partner. The Journal entry will be:
B’s Capital A/c (` 2,40,000 × 1/6) ...Dr. ` 40,000
To A’s Capital A/c ` 40,000
14.
In the Books of X and Y
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets—Transfer: By Provision for Doubtful Debts A/c 2,000
Stock 10,000 By Creditors A/c 76,000
Debtors 40,000 By X’s Capital A/c (Stock) 8,000
Fixed Assets 80,000 1,30,000 By Bank A/c:
To Bank A/c (Creditors) 76,000 Debtors 37,600
To Gain (Profit) transferred to: Fixed Assets 1,22,000 1,59,600
X’s Capital A/c 31,680
Y’s Capital A/c 7,920
2,45,600 2,45,600

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X Y Particulars X Y
` ` ` `
To Bank A/c (Realisation Expenses) 2,000 ... By Balance b/d 20,000 60,000
To Advertisement Expenditure A/c 800 200 By General Reserve A/c 16,000 4,000
To Realisation A/c (Stock) 8,000 ... By Realisation A/c (Gain) 31,680 7,920
To Bank A/c (Final Payment) 56,880 71,720
67,680 71,920 67,680 71,920

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 47,000 By Realisation A/c 76,000
To Realisation A/c 1,59,600 By X’s Capital A/c (Realisation Expenses) 2,000
By X’s Capital A/c 56,880
By Y’s Capital A/c 71,720
2,06,600 2,06,600