Date | Particulars | LF | Amt (Dr) | Amt (Cr) | |
??.. | Dr | ? | |||
To ??.. | ? | ||||
(Being the increase in value of building brought into account) | |||||
Revaluation A/c | Dr | 80,000 | |||
To Sita?s Capital A/c | ? | ||||
To ?? | ? | ||||
To Geeta?s Capital A/c | ? | ||||
(Being the transfer of profit on revaluation to partner?s capital account in their old profit sharing ratio) | |||||
???. | Dr | 13,688 | |||
???. | Dr | ? | |||
To ??.. | ? | ||||
(Being Sita?s share of goodwill adjusted in the capital accounts of gaining partners in their gaining ratio, i.e. 1 : 3) |
Answer:
JOURNAL
Working Notes 1. Calculation of Gaining Ratio Gaining Ratio = New Share ? Old Share Reeta \[=\,\frac{1}{2}-\frac{3}{8}=\frac{4-3}{8}=\frac{1}{8};\] Geeta \[\,=\,\frac{1}{2}-\frac{1}{8}=\frac{4-1}{8}=\frac{3}{8}\] \[\therefore \] Gaining Ratio = 1 : 3 2. Calculation of Sita?s Share of Goodwill Total of Last Three Years Profit = 1,05,000 + 30,000 + 84,000 = Rs.2,19,000 Sita?s Share in last Three Years Profit = \[2,19,000\times \frac{4}{8}\,=\,Rs.\,1,09,500\] Sita?s Share of Goodwill = \[1,09,500\times \frac{50}{100}\,=\,Rs.\,54,750\] Sita?s share of goodwill will be contributed by Reeta and Geeta in their gaining ratio. Reeta will Contribute \[\,=\,54,750\times 1/4\,=\,13,688;\] Geeta will Contribute \[\,=\,54,750\times 3/4\,=\,41,062\] Date Particulars LF Amt (Dr) Amt (Cr) Building A/c Dr 80,000 To Revaluation A/c 80,000 (Being the increase in value of building brought into account) Revaluation A/c Dr 80,000 To Sita?s Capital A/c \[(80,000\times 4/8)\] 40,000 To Reeta?s Capital A/c \[(80,000\times 3/8)\] 30,000 To Geeta?s Capital A/c \[(80,000\times 1/8)\] 10,000 (Being the transfer of profit on revaluation to partner?s capital accounts in their old profit sharing ratio) Reeta?s Capital A/c Dr 13,688 Geeta?s Capital A/c Dr 41,062 To Sita?s Capital A/c 54,750 (being Sita?s share of goodwill adjusted in the capital accounts of gaining partners in their gaining ratio, i.e. 1 : 3)
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