Answer:
JOURNAL
Dr Kanika's Capital Account Cr Date Particulars LF Amt (Dr) Amt (Cr) Sakshi's Capital A/c Dr 1,00,000 To Kanika's Capital A/c 1,00,000 (Being Kanika's share of goodwill adjusted in Sakshi's capital account) Reserve Fund A/c Dr 1,30,000 To Kanika's Capital A/c \[(1,30,000\times 25/100)\] 32,500 To Sakshi's Capital A/c \[(1,30,000\times 35/100)\] 45,500 To Aroha's Capital A/c \[(1,30,000\times 40/100)\] 52,000 (Being transfer of reserve fund to partners' capital accounts in their old ratio i.e. 25 : 35 : 40)
Working Note Calculation of Value of Goodwill and Kanika's Share of Goodwill \[\text{Average}\,\text{Profit}=\frac{\text{Total}\,\text{Profits}}{\text{Number}\,\text{of}\,\text{Years}}\] \[=\frac{1,50,000+1,70,000+1,60,000}{3}=\frac{4,80,000}{3}=Rs.\,1,60,000\] \[Goodwill=Average\text{ }Profit\times Number\text{ }of\text{ }Years'\text{ }Purchase=1,60,000\times 2.5=Rs.\,4,00,000\] Thus, Kanika's Share of Goodwill \[=4,00,000\times \frac{25}{100}=Rs.\,1,00,000\] Particulars Amt (Rs.) Particulars Amt (Rs.) To Kanika's Loan A/c 2,57,500 By Balance b/d 1,25,000 By Sakshi's Capital A/c 1,00,000 (Share of goodwill) By Reserve Fund A/c 32,500 2,57,500 2,57,500
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