Page 473 - AAAXII

Model Test Papers M.453

Working Notes:
1. Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Gain (Profit) on Revaluation transferred to: By Building A/c 1,00,000
Mohan’s Capital A/c 84,000 By Stock A/c 40,000
Mahesh’s Capital A/c 56,000 1,40,000
1,40,000 1,40,000

2. Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Mohan Mahesh Nusrat Particulars Mohan Mahesh Nusrat
` ` ` ` ` `
To Balance c/d 3,92,000 2,08,000 1,20,000 By Balance b/d 1,00,000 80,000 ...
By Revaluation A/c 84,000 56,000 ...
(Gain)
By General Reserve A/c 96,000 64,000 ...
By Workmen Compensation
Reserve A/c 12,000 8,000 ...
By Premium for
Goodwill A/c 1,00,000* ... ...
By Bank (WN 3) ... ... 1,20,000

3,92,000 2,08,000 1,20,000 3,92,000 2,08,000 1,20,000

* Premium for Goodwill has been credited to Mohan’s Capital Account because only he has sacrificed his share
of profit in favour of Nusrat.
3. Calculation of Nusrat’s Capital in the New Firm:
Combined Capital of Mohan and Mahesh = ` 3,92,000 + ` 2,08,000 = ` 6,00,000
20
Nusrat’s Capital = ` 6,00,000 × = ` 1,20,000.
100
4. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 1,40,000 By Balance c/d 3,60,000
To Nusrat’s Capital A/c 1,20,000
To Premium for Goodwill A/c 1,00,000
3,60,000 3,60,000

Or
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Building A/c 1,00,000 By Land A/c 1,20,000
To Furniture A/c 20,000 By Loss transferred to:
To Provision for Doubtful Debts A/c 5,000 Kushal’s Capital A/c 3,000
Kumar’s Capital A/c 1,000
Kavita’s Capital A/c 1,000 5,000
1,25,000 1,25,000