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M.66 An Aid to Accountancy—CBSE XII

12. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2017
Dec. 31 Vikas’s Capital A/c ...Dr. 20,000
Vishal’s Capital A/c ...Dr. 20,000
Vaibhav’s Capital A/c ...Dr. 10,000
To Profit and Loss A/c 50,000
(Being the debit balance of Profit and Loss Account transferred to
Capital Accounts of partners in their profit-sharing ratio)
Vikas’s Capital A/c ...Dr. 12,000
Vishal’s Capital A/c ...Dr. 12,000
To Vaibhav’s Capital A/c 24,000
(Being Vaibhav’s share in goodwill debited to continuing partners
in their gaining ratio, i.e., 1 : 1)
Profit and Loss Suspense A/c ...Dr. 11,250
To Vaibhav’s Capital A/c 11,250
(Being Vaibhav’s share of profit till the date of death credited) (WN 1)
Vaibhav’s Capital A/c ...Dr. 4,05,250
To Vaibhav’s Executor’s A/c 4,05,250
(Being the amount due to Vaibhav transferred to his
Executor’s Account) (WN 2 and 3)
Working Notes:
1. Calculation of Vaibhav’s Share in Profit: `
Average Profit for the past 5 years 75,000
Profit up to the date of death (31st December, 2017) (` 75,000 × 9/12) 56,250
Vaibhav’s share in profit (` 56,250 × 1/5) 11,250

2. Calculation of Amount due to Vaibhav:
Credit balance in his Capital A/c 3,80,000
Add: Share of Goodwill 24,000
Share in Profit 11,250
4,15,250
Less: Debit Balance of Profit and Loss Account (1/5th) 10,000
4,05,250

3. The amount due to Vaibhav is not paid, therefore, entry for transfer to Vaibhav’s Executor’s Account
is passed.

13. City Club
INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Expenditure ` Income `

To Affiliation Fee to Pradesh Club 10,000 By Subscription (1,600 × ` 100) 1,60,000
To Sundry Expenses 1,52,000 By Sale of Scrap 2,000
To Depreciation on Furniture (WN 3) 7,000 By Deficit 7,000
(i.e., Excess of Expenditure over Income)
1,69,000 1,69,000