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M.46 An Aid to Accountancy—CBSE XII

BALANCE SHEET OF THE NEW FIRM
as at ...
Liabilities ` Assets `
Creditors 28,000 Cash at Bank (WN 2) 87,900
Workmen’s Compensation Claim 2,000 Debtors 65,000
Capital A/cs: Less: Provision for Doubtful Debts 5,000 60,000
Madan 93,780 Stock 30,000
Mohan 62,520 Investments 45,000
Gopal (WN 1) 52,100 2,08,400 Patents 15,000
Accrued Income 500

2,38,400 2,38,400

Working Notes:
1. Calculation of Gopal’s Share of Capital: `
Madan’s Capital after all Adjustments 93,780
Mohan’s Capital after all Adjustments 62,520
Combined Capital of Madan and Mohan for 3/4th share 1,56,300
Total Capital of the Firm = ` 1,56,300 × 4/3 = ` 2,08,400
Gopal’s Capital in the New Firm = ` 2,08,400 × 1/4 = ` 52,100.
2. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 10,000 By Balance c/d 87,900
To Bad Debts Recovered A/c 800
To Gopal’s Capital A/c 52,100
To Premium for Goodwill A/c 25,000
87,900 87,900

Or
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2015
March 31 Building A/c ...Dr. 2,00,000
Investments A/c ...Dr. 50,000
Photocopier A/c ...Dr. 20,000
To Revaluation A/c 2,70,000
(Being the increase in Assets recorded)
Revaluation A/c ...Dr. 1,20,000
To Plant and Machinery A/c 40,000
To Provision for Doubtful Debts A/c 10,000
To Stock A/c 20,000
To Employee’s Claim A/c 50,000
(Being the decrease in asset and liability recorded)
Revaluation A/c ...Dr. 1,50,000
To A’s Capital A/c 75,000
To B’s Capital A/c 50,000
To C’s Capital A/c 25,000
(Being the Gain (Profit) on Revaluation transferred to all partners in their
profit-sharing ratio) (WN 1)