Page 389 - AAAXII

M.372 An Aid to Accountancy—CBSE XII

BALANCE SHEET as at 31st March, 2018
Liabilities ` Assets `
Subscription Received in Advance 500 Cash in Hand 8,040
Capital Fund Cash at Bank 9,500
Opening Balance (WN) 27,270 Subscription Receivable 750
Add: Life Membership Fee 3,250 Building (` 20,000 – ` 1,000) 19,000
Surplus 24,040 54,560 Furniture (` 3,000 + ` 8,600 – ` 580 (Dep.)) 11,020
Books (` 2,000 + ` 6,500 – ` 1,000 – ` 750) 6,750
55,060 55,060
Working Note: Calculation of Capital Fund as on 1st April, 2017:

BALANCE SHEET as at 1st April, 2017
Liabilities ` Assets `
Capital Fund (Balancing Figure) 27,270 Cash in Hand 1,000
Cash at Bank 1,270
Building 20,000
Furniture 3,000
Books 2,000
27,270 27,270

16.
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Provision for Doubtful Debts A/c 600 By Building A/c 10,000
To Machinery A/c 7,200 By Sundry Creditors A/c 1,800
To Provision for Outstanding Repairs A/c 3,000 By Prepaid Insurance A/c 2,000
To Gain (Profit) transferred to:
X’s Capital A/c 1,500
Y’s Capital A/c 1,000
Z’s Capital A/c 500 3,000
13,800 13,800

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X (`) Y (`) Z (`) Particulars X (`) Y (`) Z (`)
To Y’s Capital A/c (Goodwill) 9,000 ... 3,000 By Balance b/d 90,000 60,000 30,000
To Cash A/c ... 9,000 ... By Reserve A/c 3,000 2,000 1,000
To Y’s Loan A/c (Transferred) ... 66,000 ... By Revaluation A/c (Gain) 1,500 1,000 500
To Balance c/d* 90,000 ... 30,000 By X’s Capital A/c (WN) ... 9,000 ...
By Z’s Capital A/c (WN) ... 3,000 ...
By Cash A/c 4,500 ... 1,500
(Balancing Figure)
99,000 75,000 33,000 99,000 75,000 33,000

* Total capital of ` 1,20,000 will be in new profit-sharing ratio, i.e., 3 : 1. Thus,
X’s Capital in new firm = 3/4 of ` 1,20,000 = ` 90,000;
Z’s Capital in new firm = 1/4 of ` 1,20,000 = ` 30,000.