Practical Problem 05

Dr                                                                                             Partner Capital A/c                                                                                      Cr
Particular
Sohan
Rohan
Mohan
Particular
Sohan
Rohan
Mohan
To Drawing A/c
 
25,000
 
By Balance b/d
20,000
20,000
20,000
To Executive Loan A/c
 
49,000
 
By Revaluation A/c
15,000
10,000
5,000
To Balance c/d
63,500
 
34,500
By General Reserve A/c
13,500
9,000
4,500
    
By Goodwill A/c
15,000
10,000
5,000
    
By P & L Suspense A/c
 
25,000
 
 
63,500
74,000
34,500
 
63,500
74,000
34,500

Dr                                                                                                                                        Revaluation A/c                                                                                                                       Cr

Particular

Amount

Amount

Particular

Amount

Amount

To Stock A/c

 

5,000

By Land & Building A/c

 

10,000

To R.D.D A/c

 

3,000

By Machinery A/c

 

20,000

To Patents A/c

 

12,000

By Investment A/c

 

20,000

To Partner’s Capital A/c

     

Sohan

15,000

    

Rohan

10,000

    

Mohan

5,000

30,000

   
  

50,000

  

50,000

2. Firm goodwill A/c = Rs 30,000 distributed among partner in old Ratio i.e 3:2:1, Sohan :15,000    Rohan : 10,000  Mohan : 5,000

3. Increase in Value of land = (Book value)/(100-20) x 20  = 40,000/80 x 20 = 10,000

4. Increase in value of Machinery =  (Book value)/(100-20) x 20  = 80,000/80 x 20 = 20,000