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M.92 An Aid to Accountancy—CBSE XII

100 12
Y’s Drawings = ` 2,000 × ¥ = ` 40,000;
10 6
100 12
Z’s Drawings = ` 1,000 × ¥ = ` 20,000.
10 6
4. Other related figures transferred to related accounts.
14. (a) Calculation of Goodwill and Suresh’s Share of Goodwill:

Total Profits = ` 50,000 + ` 80,000 + ` 1,10,000 + ` 2,20,000 – ` 1,60,000**
= ` 3,00,000

Average Profit = ` 3,00,000 ÷ 5 = ` 60,000
Goodwill = Average Profit × No. of Years’ Purchase
= ` 60,000 × 2 = ` 1,20,000
2
Suresh’s Share of Goodwill = ` 1,20,000 × = ` 48,000, which is to be contributed
5
by Ramesh and Naresh in their gaining ratio of 2 : 1.
(b) Calculation of Suresh’s Share of Profit/Loss:
Suresh’s Share of Loss = Loss of 2018 × Proportionate Period × Suresh’s Share
3 2
= ` 1,60,000** × ¥ = ` 16,000.
12 5
** The Profit and Loss Account shows a debit balance in the Balance Sheet as at
31st March, 2018. It means firm suffered a loss of ` 1,60,000 in the year ended
31st March, 2018.
(c)
Dr. SURESH’S CAPITAL ACCOUNT Cr.
Particulars ` Particulars `
To Profit and Loss Suspense A/c 16,000 By Balance b/d 2,36,000
(Share of Loss) By General Reserve A/c (` 30,000 × 2/5) 12,000
To Suresh’s Executor’s A/c (Balancing Figure) 2,80,000 By Ramesh’s Capital A/c (Goodwill) 32,000
By Naresh’s Capital A/c (Goodwill) 16,000
2,96,000 2,96,000

Or
Dr. B’S CAPITAL ACCOUNT Cr.

Particulars ` Particulars `
To Drawings A/c 20,000 By Balance b/d 2,00,000
To Interest on Drawings A/c 600 By A’s Current A/c (WN 2) 30,000
To B’s Executor’s A/c (Balancing Figure) 4,14,900 By C’s Current A/c (WN 2) 30,000
By Profit and Loss Suspense A/c (WN 3) 22,500
By B’s Salary A/c (` 16,000 × 9) 1,44,000
By Interest on Capital A/c 9,000
(` 2,00,000 × 9/12 × 6/100)
4,35,500 4,35,500