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Model Test Papers M.373

BALANCE SHEET OF THE NEW FIRM as at 31st March, 2018
Liabilities ` Assets `
Sundry Creditors 13,800 Cash (` 16,000 – ` 9,000 + ` 4,500 + ` 1,500) 13,000
Employees’ Provident Fund 10,000 Prepaid Insurance 2,000
Provision for Outstanding Repairs 3,000 Debtors 20,000
Y’s Loan 66,000 Less: Provision for Doubtful Debts 1,000 19,000
Capital A/cs Stock 28,000
X 90,000 Machinery 40,800
Z 30,000 1,20,000 Building 1,10,000
2,12,800 2,12,800

Working Note:
Firm’s Goodwill = ` 36,000
Y’s Share of Goodwill = 2/6 of ` 36,000 = ` 12,000, which will be contributed by X and Z in their gaining ratio,
i.e., 3 : 1.
Thus, X’s contribution = 3/4 of ` 12,000 = ` 9,000;
Z’s contribution = 1/4 of ` 12,000 = ` 3,000.

Or
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `

To Gain (Profit) transferred to: By Machinery A/c 14,000
Annu’s Capital A/c 18,480 By Provision for Doubtful Debts A/c 7,000
Mannu’s Capital A/c 12,320 30,800 By Creditors A/c 9,800
30,800 30,800

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Annu Mannu Sonu Particulars Annu Mannu Sonu
` ` ` ` ` `
To Bank A/c 41,080 85,720 ... By Balance b/d 1,19,000 1,12,000 ...
(Balancing Figure) By General Reserve A/c 6,000 4,000 ...
To Balance c/d (WN 1) 1,12,000 56,000 56,000 By Investment Fluctuation
Reserve A/c 1,200 800 ...
By Revaluation A/c 18,480 12,320 ...
By Bank A/c ... ... 56,000
By Premium for Goodwill A/c 8,400 12,600 ...
1,53,080 1,41,720 56,000 1,53,080 1,41,720 56,000

BALANCE SHEET OF THE NEW FIRM as at 1st April, 2018
Liabilities ` Assets `
Creditors 46,200 Cash at Bank (WN 2) 27,200
Capital A/cs: Debtors 42,000
Annu 1,12,000 Investments 19,000
Mannu 56,000 Building 98,000
Sonu 56,000 2,24,000 Machinery 84,000
2,70,200 2,70,200