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Banasthali Vidyapith: Assignment of Advanced Accountancy
Banasthali Vidyapith: Assignment of Advanced Accountancy
ASSIGNMENT OF
ADVANCED ACCOUNTANCY
To salaries By Interest On
Drawing
A:72000 A:217
B:48000 B:160
C:54000 156000 C:125 502
To Interest on
capital
A: 25,500
B: 16500
C:18,300 60,300
To Commission
A: 55,200
B:69, 000 124200
To Accountant 5000
salary
To C’s commission 43,335
To Accountant’s 26,264
commission
To Profit
transferred A:97,
646
B:73, 234
C:48, 823 2,19,703
TOTAL 6,90,502 TOTAL 6,90,502
PARTNER‘S CAPITAL A/C
Particula A B C Particula A B C
rs rs
To IOD 217 160 125 By 425000 275000 305000
balance
b/d
To 5000 4375 3125 By salary 6000 4000 4500
Drawing
To 604129 433199 437933 By IOC 25500 16500 18300
Balance
c/d
By 55200 69000 64560
Commis
sion
By P&L 97,646 73,234 48823
A/C
TOTAL 609346 437734 441183 TOTAL 609346 437734 441183
Working notes:
1. INTEREST ON CAPITAL :
A: 425000*6/100= 25500
B: 275000*6/100=16500
C: 305000*6/100=18300
2. INTEREST ON DRAWING:
A: 5000*8*6.5/100*12=217
B:4375*8*5.5/100*12=160
C: 3125*8*6/100*12=125
3. COMMISSION:
A:690000*8/100=55200
B: 690000*10/100=69000
C:288900*15/100=43335
4. SALARIES:
A: 6000*12= 72,000
B: 4000*12=48, 000
C: 4500*12=54, 000
(B)
Stating in simple words, increase (gain) in profit share of a partner means purchase of his share of
profit from other partner or partners by acquiring his or their share. The partner whose share
increases,i.e., gaining partner should compensate the partner or partners whose share has
decrease, i.e.,, sacrificing partner should be compensatey.
The compensation payable by gaining partner for hs gain to the sacrificing partner or partners is
known as “GOODWILL” OR “PREMIUM FOR GOODWILL”.
It is paid by gaining partners for their amount of gain to the sacrificing partners in their sacrificing
ratio.
For example, Dharam and Karan are partners sharing profit in the ratio of 3:2. They decided to share
profits equally in future. Thus, Dharam will lose while Karan will gain 2/10th share. Therefore, Karan
will compensate Dharam for his gained share.
If the value of goodwill is determined at Rs. 50,000, Karan shall pay Dharam Rs. 5,000
And the following entry would be pass: