Liabilities |
Amount
(₹)
|
Assets |
Amount
(₹)
|
|
Capital A/cs: | Land and Building | 3,50,000 | ||
A | 2,50,000 | Machinery | 2,40,000 | |
B | 2,50,000 | Computers | 70,000 | |
C | 2,00,000 | 7,00,000 | Investments (Market value ₹ 90,000) | 1,00,000 |
General Reserve | 60,000 | Sundry Debtors | 50,000 | |
Investments Fluctuation Reserve | 30,000 | Cash in Hand | 10,000 | |
Sundry Creditors | 90,000 | Cash at Bank | 55,000 | |
Advertisement Suspense | 5,000 | |||
8,80,000 | 8,80,000 | |||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
2019 |
|
|
|
|
|
April 1 |
General Reserve A/c |
Dr. |
|
60,000 |
|
|
To A’s Capital A/c |
|
|
|
30,000 |
|
To B’s Capital A/c |
|
|
|
18,000 |
|
To C’s Capital A/c |
|
|
|
12,000 |
|
(Reserve distributed) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr |
|
2,500 |
|
|
B’s Capital A/c |
Dr. |
|
1,500 |
|
|
C’s Capital A/c |
Dr. |
|
1,000 |
|
|
To Advertisement Suspense A/c |
|
|
|
5,000 |
|
(Advertisement Suspense distributed) |
|
|
|
|
|
|
|
|
|
|
|
Investment Fluctuation Reserve A/c |
Dr. |
|
30,000 |
|
|
To Investment A/c |
|
|
|
10,000 |
|
To A’s Capital A/c |
|
|
|
10,000 |
|
To B’s Capital A/c |
|
|
|
6,000 |
|
To C’s Capital A/c |
|
|
|
4,000 |
|
(Investment Fluctuation Reserve distributed) |
|
|
|
|
|
|
|
|
|
|
|
Machinery A/c |
Dr. |
|
12,000 |
|
|
Motor Cycle A/c |
Dr. |
|
20,000 |
|
|
Creditors A/c |
Dr. |
|
10,000 |
|
|
To Revaluation A/c |
|
|
|
42,000 |
|
(Assets revalued) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
|
|
25,000 |
|
|
To Land & Building A/c |
|
|
|
17,500 |
|
To Provision for Doubtful Debts A/c |
|
|
|
2,500 |
|
To Bank A/c (Remuneration) |
|
|
|
5,000 |
|
(Assets revalued) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
|
|
17,000 |
|
|
To A’s Capital A/c |
|
|
|
8,500 |
|
To B’s Capital A/c |
|
|
|
5,100 |
|
To C ’s Capital A/c |
|
|
|
3,400 |
|
(Profit on revaluation transferred to Partners’ Capital A/c) |
|
|
|
|
|
|
|
|
|
|
|
B’s Capital A/c |
Dr. |
|
10,000 |
|
|
C ’s Capital A/c |
Dr. |
|
40,000 |
|
|
To A’s Capital A/c |
|
|
|
50,000 |
|
(Goodwill adjusted) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|||
Land & Building A/c |
17,500 |
Machinery A/c |
12,000 |
|||
Provision for Doubtful Debts A/c |
2,500 |
Motor Cycle A/c |
20,000 |
|||
Bank A/c (Remuneration) |
5,000 |
Creditors A/c |
10,000 |
|||
Profit transferred to: |
|
|
|
|||
A |
8,500 |
|
|
|
||
B |
5,100 |
|
|
|
||
C |
3,400 |
17,000 |
|
|
||
|
42,000 |
|
42,000 |
|||
|
|
|
|
|||
Working Notes:
WN1: Calculation of sacrifice or gain
WN2: Valuation of Goodwill
WN3: Adjustment of Goodwill