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M.88 An Aid to Accountancy—CBSE XII
Calculation of Gain/Sacrifice of each Partner:

X Y Z
I. Their New Share 2/10 3/10 5/10
II. Their Old Share 5/10 3/10 2/10
III. Difference (I – II) (3/10) ... 3/10
Sacrifice Gain

Share of Sacrificing and Gaining Partner in the Net Accumulated Profits, Losses
and Reserves:
X’s Sacrifice = ` 36,000 × 3/10 = ` 10,800
Z’s Gain = ` 36,000 × 3/10 = ` 10,800.

ADJUSTING JOURNAL ENTRY
Date Particulars L.F. Dr. (`) Cr. (`)
2018
April 1 Z’s Capital A/c ...Dr. 10,800
To X’s Capital A/c 10,800
(Being the adjustment made for net accumulated profit, loss and reserves)

9. JOURNAL OF LINUX LTD.

Date Particulars L.F. Dr. (`) Cr. (`)
2017
April 1 Bank A/c ...Dr. 2,40,000
To Debentures Application and Allotment A/c 2,40,000
(Being the application money for 500; 9% Debentures @ ` 480
each received)
Debentures Application and Allotment A/c ...Dr. 2,40,000
Loss on Issue of Debentures A/c ...Dr. 22,500
To 9% Debentures A/c 2,50,000
To Premium on Redemption of Debentures A/c 12,500
(Being 500; 9% Debentures allotted at a discount of
4%, redeemable at a premium of 5%)
2018
March 31 Debentures’ Interest A/c ...Dr. 22,500
To Debentureholders’ A/c 20,250
To TDS Payable A/c 2,250
(Being the interest payable on 9% Debentures and tax deducted
at source @ 10%)
Debentureholders’ A/c ...Dr. 20,250
TDS Payable A/c ...Dr. 2,250
To Bank A/c 22,500
(Being the interest paid and TDS deposited)
Statement of Profit and Loss (Finance Cost) ...Dr. 22,500
To Debentures’ Interest A/c 22,500
(Being the interest on debentures transferred to Statement of
Profit and Loss)