Page 417 - AAAXII

Model Test Papers M.399

Working Notes:
1. Gain/(Sacrifice) = New Share – Old Share
2 3 1
Y’s Gain = - =
5 10 10
3 2 4
Z’s Gain = - = , Gaining Ratio = 1 : 4.
5 10 10
5
2. X’s Share of Goodwill = ` 80,000 × = ` 40,000 to be contributed by Gaining Partners in their Gaining Ratio.
10
1
Y’s contribution = ` 40,000 × = ` 8,000;
5
4
Z’s contribution = ` 40,000 × = ` 32,000.
5
3. Total Capital of New Firm = Adjusted Capitals of All Partners – Cash Available for Payment
= (` 1,19,750 + ` 77,850 + ` 16,900) – (` 40,000 – ` 8,000 – ` 15,000) = ` 1,97,500.
Alternatively:
Total Capital of New Firm = Adjusted Capital of Remaining Partners + Cash Payable to Outgoing Partner
– Cash Available + Cash Required to Maintain

= ` 77,850 + ` 16,900 + ` 1,19,750 – (` 40,000 – ` 8,000) + ` 15,000 = ` 1,97,500.
2 3
4. Y’s New Capital = ` 1,97,500 × = ` 79,000, Z’s New Capital = ` 1,97,500 × = ` 1,18,500.
5 5
Or

Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `

To Investment A/c (` 50,000 – ` 45,000) 5,000 By Accrued Income A/c 1,000
To Patents A/c 2,000 By Bad Debts Recovered A/c 4,000
By Loss transferred to:
Madan’s Capital A/c 1,200
Mohan’s Capital A/c 800 2,000
7,000 7,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Madan Mohan Gopal Particulars Madan Mohan Gopal
` ` ` ` ` `

To Revaluation A/c 1,200 800 ... By Balance b/d 60,000 40,000 ...
(Loss) By General Reserve A/c 12,000 8,000 ...
To Balance c/d 88,200 58,800 49,000 By Workmen Compensation
Reserve A/c 5,400 3,600 ...
By Premium for Goodwill A/c 12,000 8,000 ...
By Bank A/c (WN 1) ... ... 49,000
89,400 59,600 49,000 89,400 59,600 49,000