Dear Student Seema's Capital A/c Date Particulars Amount (in Rs) Date Particulars Amount (in Rs) Bal B/d 30,000 Punit's Capital A/c 7,500 Rahul's Capital A/c 4,500 Profit and Loss suspense A/c 4,000 Seema's Executors A/c 55,500 Reserves 4,000 Interest on Capital (30,000 x 10% x 6/12) 1,500 Revaluation A/c 4,000 55,500 55,500 Seema's Executors A/c Date Particulars Amount (in Rs) Date Particulars Amount (in Rs) Cash A/c 15,500 Seema''s Capital A/c 55,500 Bal C/d 40,000 55,500 55,500 Revaluation A/c Date Particulars Amount (in Rs) Date Particulars Amount (in Rs) Machinery 4,000 Patent A/c 4,000 Building A/c 20,000 Profit Transferred in (5:3:2) Punit's Capital A/c 10,000 Rahul's Capital A/c 6,000 Seema's Capital A/c 4,000 24,000 24,000 Calculation of Goodwill Average Profit of last 5 years (30,000 + 26,000 + 24,000 + 30,000 + 40,000)/5 30,000 Goodwill @ 2 Years purchase 60,000 Share of Goodwill of Seema (60,000 x 2/10) 12,000 Gaining Ratio 5:3 Goodwill Adjustment for Seema Punit's Capital A/c (12,000 x 5/8) 7,500 Rahul's Capital A/c (12,000 x 3/8) 4,500 Profit till Death Profit / (loss) of Year ended 31-03-2017 40,000 Proportionate Profit till 01-10-2017 (40,000 x 6/12) 20,000 Seema's Share (20,000 x 2/10) 4,000 Regards

Answer this question

Answer this question QIS On 31st March 2017 the Balance Sheet of Punil, Rahul and Seemawasas follows (6) Balance Sheet of Punit- Rahul and Seema As at March 31, 2017 Liabilities itals Punit Rahul Sccma Reserves Creditors 60,000 50,000 30 ooo Amount 140,000 20 ooo 14.000 Assets Buil din Machinery Patents Stock Cash Amount 40,000 60,000 12,000 20 ooo 42,000 They were sharing Profit and loss in the ratio Seema died on October l, 2017. It was agreed between her executors and the lemaining partners that: Goodwill be valued at 2 years' purchase of the average profits of the previous five years, which were: 2012-13: 30,000; 2013-14: 26,000; 2014-15:24 000; 2015-16: 30 000 and 2016-17: 40.000. Patents be valued al 16,000; Machinery at 56,000; Buildings at 60,000. iii. Profit ror the year 2015-16 be taken as having been accrued at the same rate as that in the prev10trs year. iv. Interest on capital be provided at 10% p. a- v. A sum of 15500 was paid to her executors immediately. Prepare Revaluation Account, Seema's Capital Account and Seema's executors Account

Dear Student

Seema's Capital A/c
Date	Particulars	Amount (in Rs)	Date	Particulars	Amount (in Rs)
				Bal B/d	30,000
				Punit's Capital A/c	7,500
				Rahul's Capital A/c	4,500
				Profit and Loss suspense A/c	4,000
	Seema's Executors A/c	55,500		Reserves	4,000
				Interest on Capital (30,000 x 10% x 6/12)	1,500
				Revaluation A/c	4,000


		55,500			55,500

Seema's Executors A/c
Date	Particulars	Amount (in Rs)	Date	Particulars	Amount (in Rs)
	Cash A/c	15,500		Seema''s Capital A/c	55,500



	Bal C/d	40,000

		55,500			55,500

Revaluation A/c
Date	Particulars	Amount (in Rs)	Date	Particulars	Amount (in Rs)
	Machinery	4,000		Patent A/c	4,000
				Building A/c	20,000


	Profit Transferred in (5:3:2)
	Punit's Capital A/c	10,000
	Rahul's Capital A/c	6,000
	Seema's Capital A/c	4,000

		24,000			24,000

Calculation of Goodwill
Average Profit of last 5 years	(30,000 + 26,000 + 24,000 + 30,000 + 40,000)/5	30,000
Goodwill @ 2 Years purchase		60,000
Share of Goodwill of Seema	(60,000 x 2/10)	12,000

Gaining Ratio		5:3
Goodwill Adjustment for Seema
Punit's Capital A/c	(12,000 x 5/8)	7,500
Rahul's Capital A/c	(12,000 x 3/8)	4,500

Profit till Death
Profit / (loss) of Year ended 31-03-2017		40,000
Proportionate Profit till 01-10-2017	(40,000 x 6/12)	20,000
Seema's Share	(20,000 x 2/10)	4,000

Regards

View Full Answer