Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | |
Creditors | 40,000 | Cash | 32,000 | |
General Reserve | 30,000 | Debtors | 48,000 | |
Capital A/cs | Stock | 12,000 | ||
Ajay | 80,000 | Patents | 2,000 | |
Vijay | 40,000 | Machinery | 64,000 | |
Sanjay | 40,000 | 1,60,000 | 72,000 | |
2,30,000 | 2,30,000 |
Answer:
DrAjay's Capital Account Cr
Working Notes 1. Calculation of Gaining Ratio Gaining Ratio = New Share \[-\] Old Share \[Vijay=\frac{2}{3}-\frac{2}{5}=\frac{10-6}{15}=\frac{4}{15}'\] \[Sanjay=\frac{1}{3}-\frac{1}{5}-\frac{5-3}{15}=\frac{2}{15}\] 2. Calculation of Share of Profit \[Average\,\Pr ofit\,of\,Four\,Years=\frac{1,08,000}{4}=Rs.\,27,000\] Firm?s Goodwill = Average Profit \[\times \] Number of years? Purchase \[=27,000\times 2=\text{Rs}\text{.}\,\,54,000\] Vijay?s Share in Goodwill \[=54,000\times 2/5=Rs.\,21,600\] to be adjusted in gaining ratio i.e., 2:1. \[Gaining\text{ }Ratio=4:2\text{ }or\text{ }2:1\] 3. Calculation of General Reserve \[30,000\times \frac{2}{5}=Rs.\,12,000\] 4. Calculation of Interest on Capital \[30,000\times \frac{2}{5}=Rs.\,12,000\] 5. Calculation of Profit up to Death \[24,000\times \frac{2}{5}\times \frac{6}{12}=Rs.\,4,800\] Particulars Amt (Rs.) Particulars Amt (Rs.) To Ajay?s Executor?s A/c 1,23,200 By Balance b/d 80,000 By general Reserve A/c 12,000 By Vijay?s Capital A/c 14,400 By Sanjay?s Capital A/c 7,200 By Interest on Capital A/c 4,800 By Profit and Loss suspense A/c 4,800 1,23,200 1,23,200
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