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M.454 An Aid to Accountancy—CBSE XII

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Kushal Kumar Kavita Particulars Kushal Kumar Kavita
` ` ` ` ` `
To Advertisement By Balance b/d 3,00,000 2,80,000 3,00,000
Expenditure A/c 12,000 4,000 4,000 By General Reserve A/c 84,000 28,000 28,000
To Revaluation A/c (Loss) 3,000 1,000 1,000 By Kushal’s Capital A/c ... ... 6,000
To Kavita’s Capital A/c 6,000 2,000 ... (Goodwill)
(Goodwill) By Kumar’s Capital A/c ... ... 2,000
To Cash A/c (10%) ... ... 33,100 (Goodwill)
To Kavita’s Loan A/c (90%) ... ... 2,97,900 By Kushal’s Current A/c 1,35,000 ... ...
(Transfer) (Balancing Figure)
To Kumar’s Current A/c ... 1,35,000 ...
(Balancing Figure)
To Balance c/d (WN 1) 4,98,000 1,66,000 ...
(Adjusted Capital)
5,19,000 3,08,000 3,36,000 5,19,000 3,08,000 3,36,000

BALANCE SHEET OF THE RECONSTITUTED FIRM
as at 1st April, 2018
Liabilities ` Assets `
Creditors 1,20,000 Cash (WN 2) 36,900
Bills Payable 1,80,000 Debtors 2,00,000
Kavita’s Loan A/c 2,97,900 Less: Provision for Doubtful Debts 15,000 1,85,000
Capital A/cs: Stock 2,20,000
Kushal 4,98,000 Furniture 1,00,000
Kumar 1,66,000 6,64,000 Building 2,00,000
Kumar’s Current A/c 1,35,000 Land 5,20,000
Kushal’s Current A/c 1,35,000
13,96,900 13,96,900

Working Notes:
1. Calculation of Adjusted Capital of Remaining Partners in the New Firm:
Kushal’s Capital after all adjustments [` 3,00,000 + ` 84,000 – ` 12,000 – ` 3,000 – ` 6,000 ` 3,63,000
Kumar’s Capital after all adjustments [` 2,80,000 + ` 28,000 – ` 4,000 – ` 1,000 – ` 2,000] ` 3,01,000
Total Capital of the New Firm ` 6,64,000
3
Adjusted Capital of Kushal = ` 6,64,000 × = ` 4,98,000
4
1
Adjusted Capital of Kumar = ` 6,64,000 × = ` 1,66,000.
4
2. Dr. CASH ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 70,000 By Kavita’s Capital A/c 33,100
By Balance c/d 36,900
70,000 70,000