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Model Test Papers M.481

3. Total Capital of the New firm and New Capitals of Partners:
2
Total Capital of New firm on the basis of Naval’s Capital = ` 5,00,000 × = ` 10,00,000
1
2 3
Karim’s Capital = ` 10,00,000 × = ` 2,00,000; Rehman’s Capital = ` 10,00,000 × = ` 3,00,000;
10 10
Naval’s Capital = ` 5,00,000.
4. ‘All Debtors are Good’ means Provision for Doubtful Debts is no longer required and hence should be credited
to Revaluation Account.
Or
Dr. REVALUATION ACCOUNT Cr.

Particulars ` Particulars `
To Building A/c 1,00,000 By Land A/c 3,20,000
To Furniture A/c 30,000
To Gain (Profit) transferred to:
Lalit’s Capital A/c 95,000
Mohan’s Capital A/c 47,500
Nath’s Capital A/c 47,500 1,90,000
3,20,000 3,20,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Lalit Mohan Nath Particulars Lalit Mohan Nath
` ` ` ` ` `
To Nath’s Capital A/c 1,00,000 50,000 ... By Balance b/d 6,00,000 4,80,000 4,80,000
(Goodwill) By Lalit’s Capital A/c ... ... 1,00,000
To Nath’s Loan A/c ... ... 8,37,500 (Goodwill)
To Mohan’s Current A/c ... 1,20,000 ... By Mohan’s Capital A/c ... ... 50,000
(Bal. Fig.) (Goodwill)
To Balance c/d (WN 3) 10,35,000 5,17,500 ... By General Reserve A/c 2,20,000 1,10,000 1,10,000
(Adjusted capital) By Workmen Compensa-
tion Reserve A/c 1,00,000 50,000 50,000
By Revaluation A/c (Gain) 95,000 47,500 47,500
By Lalit’s Current A/c (Bal. Fig.) 1,20,000 ... ...
11,35,000 6,87,500 8,37,500 11,35,000 6,87,500 8,37,500

BALANCE SHEET OF LALIT AND MOHAN
as at 1st April, 2018
Liabilities ` Assets `
Capital A/cs: Land 11,20,000
Lalit 10,35,000 Building 5,00,000
Mohan 5,17,500 15,52,500 Furniture 2,10,000
Nath’s Loan A/c 8,37,500 Debtors 4,00,000
Workmen Compensation Claim 1,60,000 Less: Provision for Doubtful Debts 20,000 3,80,000
Creditors 2,40,000 Stock 4,40,000
Mohan’s Current A/c 1,20,000 Lalit’s Current A/c 1,20,000
Cash 1,40,000
29,10,000 29,10,000