Part A Sactificing ratio = 40,000 : 60,000 or 2:3 2 Ram's sacrifice = 4.5 20 BS 3 Shyamis sacrifice = 5% 5" 35 New profit share of old partners = Old profit share ~ Share of proft sacrificed ‘ 3. 2_12-2_10 Ramis new profit share = 2-55 = 125" <3 5 Shyam's new profit share -= Mohan's profit share = + or = 4°" 20 210, 3,5 10:5:50r2:1:1 New Profit-sharing Ratio of Ram, Shyam and Mohan = 57: = 35 . (d) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A). . (a) %4 ee Reissue price cannot be /ess than the amount unpaid on forfeited shares. Or (©) % 6,60,000. Working Note: z Loss on Issue of Debentures (® 60,00,000 x 15/100) = 9,00,000 Less: Securities Premium = 2,40,000 Loss on Issue of Debentures to be written-off from Statement of Profit & Loss 6,60,000 |. (d) 22,500 z Total Loss on Workmen Compensation = % 3,150 x 10/3 = 10,500 Add: Workmen Compensation Reserve = 12,000 Claim for Workmen Compensation 2,500 a Or (©) 2,27,500. Working Note: Comrect Profit = Net Profit (Given) + Rent for personal use (Drawings) + Repair For Abhay's Private Car — Salaries to Abhay and Arun = %230,000 + % 60,000 & 30,000 x 2) +t 7,500-< 70,000 = 2,27,500.10. © ag Note ing Note: working ©11,00,000 _ " pebentures to be ssued = “77-7 = 10,000 Debentures no entures Account i credited with & 10,00,000, ie, 10,000 x % 100. qs Debs Or ral Security: not paid on Debentures issued as Collate interes (@ Both ‘Assertion (A) and Reason (R) are correct, and ease”! Bis me explanation of Assertion (A) because Securities Premium recoived and CH din the Act: Premium Account can be used for the purpose? stater Securities (9 = 1,50,000. working Note: . y + 10,000 - % 90,000 | Sane %30,000+%70,000+% oo + 1,40,000~% 90,000" 50,000 Goodwill = % 50,000 x 3=@ 1,50,000. ¥(€ 1,20,000 (Loss) - % 40,000 (Capital Expenditure) + % 10,000 (Depreciation)] = 90,000 (Loss)- Or @ = 1,08,000. Working Note: z ‘Amount paid in settlement = 5,00,000 Less: Y's Capital after. ‘Adjustments = 464,000 Hidden Goodwill 36,000 %1,08,000. Value ofFemisGoodwil=% 36000 > (Q %3,00,000. Working Note: Vidyals Commission = @ 36.0 (0 % 441,750 Working Note: Amount transferred to General Reserve ‘= [8 36,00,000 + € 10,500 (Interest on Drawings)" 10 - 3,00,000) x —~ = 3,00,000. 0,000 - 3,00,000) x +55 ~% 360,000 (Interest on Capital) ~T 3,00,000 (Salary) ~£3,00,000 (Commission)] = 26,50,500 x 2 =%441,750. “Interest on Drawings: z amit = € 120,000 x -& x6 100 12 ve 3,900 6 Vidya = ¥2,40,000x ——x=— icy 700" 12 F Totalaaa a nee ——- TL. @ Allowed at 6% p.a, as is provided in the Indian Partnership Act, 1992. 12. () &39,74,000, Working Note: 4 495,000 shares of € 10 each, €8 called-up (4,95,000 x & 8) 1,000 shares paid only 76 Forfeited Account (4,000 x € 2) Subscribed Capital 13. @ 250 shares. Working Note: Nominal (Face) value of a share is € 10. Amount payable on allotment & 3 and on first and final call @ 4 Therefore, 3 was paid with application. Amount forfeited per share Less: Loss on reissue per share Gain on Reissue per share = %250 a Number of shares reissued were =250shares 14. (c) &7,500 Working Note: Capital of New Firm will be on the basis of Z's Capital = & 35,000%1 = 1,75, 000 Ys Capital in the New Firm = %1,75,000x z =%52,500 ‘Amount paid to Y = & 60,000 (Existing Capital) - 52,500 (New Capital) = 7,500. 15. (c)_A’s Capital Ale Dr. % 1,800 To Interest on Drawings A/c = 1,800 Working Note: Interest on Drawings = Total Drawings x Rate of Interest , Average Period 100 12 6 75 = %48,000x—— x = 700 “12 7 1800. Or (©) Both Assertion (A) and Reason (R) are correct 16. (c) % 1,03,000. Working Note: z (). Cash paid to 50% creditors oo 9.0m (if) Remaining creditors were paid at a discount of 5% & 1,00,000 - 5% of & 1,00,000) = 9 Total amount paid to Creditors 703008M45 f Gain/Sacrifie Ww acrifice = New Profit Share — Old Profi 6 ~ Old Profit Share Ab Gains s-oee 6 10 60 pedaine 2-2 a8 6 10 60 ou sacritee 444 2 6 10 a) p's Sacrifice = 0-= =| 2 10 60. JOURNAL particulars ps capital Nc ascaptal A/C Jo Cs capital NC Jo DsCapital A/c goodwill on account of change a JOURNAL ts written-of or Doubtful Debts A/e roviion for Doubtful Debts Alo) to peapans neous 739) CS foto be 5% of Debtors) (Provision for Dou! ‘Chander's ‘Capital A/C Damin's Capital A/e ‘To Revaluation A/c red to partners in their {Losson Revaluation transfert Yr PROFIT & LOSS, ‘APPROPRIATION, ACCOUNT forthe year ended 31st March, 2023 ce. Farticulars Particulars, z To Peters Curent Ae (477% 1:47,000) By Profit & Loss 7,47,000 ue eer 18,000) Hacc Ne bs Deiency Bome (1/23 18000) ras Ac (V7 x% 1,47,000) id: Deficiency from: Peter 9,000 {inan.oous Ss MaxSom’ Actual Share of Profit = & 1,47,000 x 1/7 = % 21,000 Som’s Guaranteed Profit = % 39,000 Deficiency = % 39,000 ~ & 21,000 = & 18,000. tis contributed by Peter and Max equally, Le, ¥ 9,000 each. eS JOURNAL 7 a fir | OO) 2023 April 1| Assets A/c Dr. NO br. 40,000 Goodwill A/c (Balancing Figure) & coal To Liabilities A/c 10,40009 To Asim Ltd y (Assets and Liabilities of Asim Ltd. taken over) pee ‘Asim Uta, Dk. 080.00 Loss on issue of Debentures A/c (1,500 30) Dr. 45,000 To Bank A/c (& 10,40,000 x 25%) 2,60,000 To 9% Debentures A/c (1,500 x 500) 7,50,000 To Securities Premium A/c (& 7,50,000 x 4/100) 30,000 To Premium on Redemption of Debentures A/c 45,000, (Purchase consideration discharged by issue of cheque & Debentures) Note: Number of Debentures to be Issue sree = 1,500 debentures Or Dr. ‘SHARE FORFEITURE ACCOUNT. G Particulars = | Particulars z To Share Capital A/c (40x 10) 700 | By Share Capital A/c (100% 30) 3000 To Capital Reserve A/c 1,200 -% 400) (Note 1) 800 To Capital Reserve A/c (Note 2) 1,200 To Balance c/d (20x30) 600 3,000 3,000 Notes: z 1. Amount forfeited on 40 shares = 40 x ® 30% 110-%30-%30-%20) = 1,200 Less: Discount on Reissue = 40x 10 = 400, Gain on Reissue of 40 shares transferred to Capital Reserve 800 2, 40 shares reissued to Sohan as & 80 paid for € 90 per share, means these shares of 10 per share. Therefore, total amount forfeited on 40 shares, ie, % 1,200 is transferred to Capital Reserve. 20. JOURNAL are reissued at a premium gain on reissue, therefor Date Particulars LR] Dr@) ce. ®) 2023 April 1 | Tushar's Current Alc To Kapil’s Current A/c (Adjustment of omission ofinterest on drawings) 2,640 2,640MA7 "gnotet aioe ®rawing forthe year = 10,000 12.» 1,20,000 1 period of Hate ajamount IS withdrawn at the end of every month, interest fs calculated for a7 averag ne eat yen (11 +0021 ire pont ings = © 1,20,000X xi a 8G, 190 gon orang Toon Ta TABLE SHOWING ADJUSTMENT Cc a" fe ee M ngs (Or) bead 6000 3,960 a EXTRACT OF BALANCE SHEET al asat Ty AND LIABILITIES Qu d £ shareholders’ Funds es {c) Share Capital oreo Accounts > paces 7, Share Capital sjuthorised Capital Z “qty Shares of 100 each eS sued Capital aan 10000 quity Shares of € 100 each subscribed Capital subscribed and Fully Paid-up are 49880 Equity Shares of € 100 each aa Forited Shares A/c (150 x & 60) | 2a 2, JOURNAL xe [Particulars tp] D@ | &@ 1) [Realisation A/c Dt 2,000 To Cash/Bank A/c ao (amount paid to a creditor Shiv) (Note 1) (i) | Cash7Bank A/c (Note 2) Dr. 35,000 To Realisation A/c 35,000, (Sale ofhalfof the investment at ass of 30%) (i) [Nisha Loan Ae Dh 50,000 To Cash/Bank A/c 50,000 iy Heesmby Nisha repaid Nishals Capital A/c Dr. 10,000 Kamal Capital A/c Dr. 10,000 Mijay’s Capital A/c Dr. 10,000 To Realisation A/c Boa * Laster of oss on realisation)1. Hanasset (recorded or unrecorded) is given in payment of liability recorded or unrecorded), then 99 °°" is passed for such payment. t 2. Book value of half investment (® 1,00,000 x 1/2) EO | Less: Loss on Sale (30% of € 50,000) Sale Value of Investment - No entry will be passed for 50% investment taken by Mohan, a creditor. 23. In the Books of Hind Ltd. JOURNAL Date Particulars LE] Or) Cr) Bank A/c (85,000 x € 40) Dr 3400,000 To Equity Shares Application A/c 34,00,0095 {Application money received on 85,000 shares) Equity Shares Application A/c Dr. 34,00,000 To Equity Share Capital A/c A To Equity Shares Allotment A/c 6,00,000 To Bank A/c Scone (Application money transferredto share capital share allotmentandrefunded) Equity Shares Allotment A/c Dr, 51,00,000 To Equity Share Capital A/c 36,00,000 To Securities Premium A/c 15,00,000 (Allotment money due on 60,000 shares with premium) Bank Alc Dr. 42,00,000 Calls-in-Arrears A/c (WN 2) 4d 3,00,000 To Equity Shares Allotment A/c 45,00,000, {Allotment money received on 56,000 shares) Equity Share Capital A/c 4,00,000 Securities Premium A/c : 1,00,000 To Shares Forfeited A/c 2,00,000 To Calls-in-Arrears A/c 300,000 (4,000 shares forfeited for non-payment of allotment money) Bank Alc 2,40,000 Shares Forfeited A/c ; 60,000 To Equity Share Capital A/c 3,00,000 (3,000 shares reissued @ % 80 per share) Shares Forfeited A/c Dr 90,000 To Capital Reserve A/c (WN 3) 90,000 (Gain on reissue of forfeited shares transferred to capital reserve) > Working Notes: 1. Prorata Allotment was done as follows: To 10,000 Applications — Nil To 75,000 Applications — 60,000ae MAI g y to” ofAllotment Money not Received from Sanjay (al 75,000 by Sanjay = ® ke ws plied bY VaY = § 0,000 4,000 = 5,000 e fr emaney due on 4000 shares sy 3,40,000 excess AF pplication Money (1,000 x & 40) “+ 40000 i sent NO roney Not Received from Sanjay 300,000 son ofamount transferred to Capital Reserve: t ested ‘on 4,000 shares ¢4,00,000 sot ntforfeited O” 3,000 shares _82,00,000,, 3.999 = 1/50,000 in mi 50 toss on Reissue he = 60,000 vans © Capital Reserve 50,000 Or CASH BOOK (With Bank Column Only) sas z particulars Z| date _| Particulars me 0 To Shares Application Ale 3,90,000 By Shares Application A/c 2, (650006) (15,000 x6) iam ro Shares Allotment A/c 1,44,000 By Balance cid He ew 1,283) ro share Capital AV (3200 xz10) | 32,000 Jo securities Premium Ac 3,200. +6520. 5,69,200 SS = aan a@ Se Shares Applicat 2,00,000 To Share Capi 40,000 To Securities Premium 60,000 To Shares Allotment A/C (10000 x%6) (Application money: adjusted) 240,000 Shares Allotment A/C (40,0006) 2,00,000 To share Capital A/¢ Me uonnt 000x*5) 40,000 To Securities Premium Ai (40,000% {allotment money due) 30,000 Share Copital AVE (8,000 * 8,000 Securities Premium (8,00% 000 x1) 36,000 J Te shares Allotment (WN 2 52,000 t To Forfeited shares Ve (8000 shares forfeited for nor 20,800 Forfeited Shares A/C 52.000 20800 To Capital Reserve Me ; (Transfer of gain on reissue Sea :000 « 52000 $0,000 shares 40,000 plied by Arun = 2. Amount Due but not received from Arun (@) Application money received on shares applied (10,000 x ¥ 6) Less: Application money due on share allotted (8,000 x ¥ 6) Excess Application money adjusted on Allotment (6) Allotment money due on Shares Allotted (8,000 x 6) Less: Excess Application money adjusted (a) Allotment money due but not received 3. Calculal Total Allotment money due (40,000 x 6) n of Allotment Money Received Later on: Less: Allotment money already received Allotment money note received (WN 2) Allotment Money received 4, Calculation of Amount to be forfeited: Amount received from Arun Less: Premium received (8,000 x 1) Amount to be forfeited 24. JOURNAL. 60,000 36,000 60,000 48,000 2,40,000 96,000 1,44,000 60,000 52,000 Date Particulars Le| Dr® cr.) Revaluation A/c To Patents A/c To Investment (& 50,000 - & 40,000) (Decrease in assets accounted) Dr. Cash Ale To Bad Debts Recovered A/c {Debt written off, now recovered) Dr. Sundry Creditors A/c Prepaid Insurance A/c Bad Debts Recovered A/c Stock Ale To Revaluation A/c (Decrease in creditors and increase in assets accounted) Pankaj Current A/c Naresh’s Current A/c To Revaluation A/c % 27,000 -% 23,000) (oss on revaluation transferred to Partners'Current Accounts) Dr, Dr. Pankajs Current A/c Naresh’ Current A/c To Investment A/c (Half investment taken over by partners) Dr. Dr. 27,000 8,000 3,000 10,000 8,000 2,000 2,400 30,000 20,000 17,000 10,000 8,000 23,000 4,000 50,009M51 papers General Reserve Alc ane To Provision for Doubtful Debts Me (20% of 40,000) ie 9009 Jo Pankajs Current Mc i 19,200 Jo Naresh’s Current Me 7790) jopoF General Reserve ta p a ore MATS Rae for Doubtful Debts and sparen Compensation Reserve Me ——_F, s4p00 To Workmen Compensation Claim A/c 6,000 Jo Pankals Current A/c 1000 ‘Jo Nareshis Current A/c 720 (Liability for Workmen Compensation Claim credited and surplus (uefmen Compensation Reservetanseed to Partners Capital Accounts [jth Old Proftshaing Rate)___—, pankals current A/C fof 4,000 Naresh’s Current A/c “Or 32,000 To Goodwill A/c 20,000 (existing Goodwill written off Bank AIC OF 1,07/000 fo Saurabh's Capital A/c 63,000 Jo Premium for Goodwill Ac 24000 ‘New partner brings capital and goodwill premium for Goodwill A/c Dr. 24,000 saurabh’s Current Alc (40,000 -€ 24,000) Dr. 16,000 To Pankaj’s Current A/c 20,000 To Naresh’s Current A/C 20,000 (premium fr Goodwill dstributed in acting 00 a) Note: Calalation of Sacrificing Ratio: Pankaj’ Sacrifice = Naresh’ Sacrifice Sacrificing Ratio = 1: 1- Or »@ REVALUATION ACCOUNT = ae Z| particulars a Pking Ne 7,00,000 | By Land A/c i" 00,000 | By Lan i ene "70,000 | By Loss transferred to: {20009 cena Debts Ac 5,000 | Kushal's Capital Alc 3000 10,000) Kumars Capital A/e Fan Kavita Capital A/c fis ae 125,000 pLoOS eee 0008Fo Revaluation A/c (Loss) ‘Fo Kavita Capital AC —Goodwill (WN 2) Fo Cash Ale (10%) Fo Kavita’s Loan A/c (90%) Fo Kumar's Current A/c (Balancing Figure) Jo Balance /d) (WN 1) Working Notes: 1. Adjustment of Capital: Kushal’s Capital (befor Kumar's Capital (before adjust re adjustm 264 Kushal PARTNERS’ CAPITAL AC Particulars | b/d 3,00,000 | 2,80,000 300,00 penne gid [tone ane” ie By ener ese ‘a ast coil A (Good a sy Kumars capital A/c (Goodwill) By Kushals Cu! (galancing Figure) rent AIC 19 6,000 = 3,63,000 10 2,000 = & 3,01,000 (64,000 £72,000 -% 3,004 1) = &3,00,000 + = 24,000 - * 1,00 ent of capital ) = %2,80,000 + ent of capital 64,000 x 3/4=% 4,98,000 Kushal's adjusted capital = Kumar's adjusted capital = % 6,64,000 x 1/4 1,66,000 2, Kavitts Share of Goodwill = © 40,000 * 1/9 = £8,000, which is contributed PY Kushal and Kumar in their gaining ratio, Le. 3:1 25. Dr. SHYAM'S CAPITAL ACCOUNT a Particulars. % | Particulars z To Shyam's Executor's A/c (Bal. Fig.) 34,700 | By Balance b/d 12,000 sy General Reserve Ac & 12,000 2/6) 4,000 By Interest on Capital A/c 300 (& 12,000 x 10/100 x 3/12) By Profit & Loss Suspense A/c 4,000 (& 1,20,000 x 10/100 x 2/6) By Ram’ Capital A/c (Goodwill) 10,800 By Rahims Capital A/c (Goodwill) 3600 34700 Dr. SHYAM'S EXECUTOR'S ACCOUNT ce. Particulars % | Particulars z To Bank Ac(Bal.Fig) 34,700 | By Shyam’s Capital A/c | 34700 34,700 ee Ea |e Working Note: Calculation of Shyant's Share of Goodwi Total P = fot oe ea ce % 9,000 + ¥ 9,800 = 27,000 il 27,0( = F 100 x 2) - (20% of ¥ 54,000) = & 54,000 - € 10,800 = $43,200 __Shyamis Share of Goodwill = ¥ 43,200 aad 14400M54 papers oclwill © 14,200 adjusting by debiting gaining partnars in gaining (A004 a at’ ram's contribution = ©14,400x 2 = & 10,800 ato 1 n= 814400 — = % 3,600 47 3/00 In the Books of Hitech Ltd, 3 LF Or.) or 660,009 | Debentures Application Alc | 660000 pebentures Application A/c or 66009 To gis Debentures A/c (10,000 x60) 600/000 To Debentures Allotment A/c(1,000x% 60) ens | ppicaton money usted) _____—— Debentures Allotment A/c Or. 460,000 | Loss on Issue of Debentures A/c Dr. 1,00,000 | To 9% Debentures. Alc To Securities Premium A/c To Premium on Redemption of Debentures A/c | alotment money due) _______ Bank A/C DI. 4,00,000 To Debentures Allotment A/c 4,00,000 (Allotment money_ received) securities Premium A/c Dr 60,000 Statement of Profit & Loss (& 1,00,000 - % 60,000) Dr. 40,000 To Loss on Issue of Debentures. Ale 1,00,000 (Loss on issue of debentures written off) oe LOSS ON ISSUE OF DEBENTURES ACCOUNT Cr. Date | Particulars @ [pate Particulars z To Premium on Redemption of By Securities Premium A/c 60,000 Debentures A/c 1,00,000 By Statement of Profit & Loss 40,000 109000 [1.00.00 Part B 4. (© Postulates Or ©) 20% Working Note: lu is Cost =¥ 100, Gross Profit = € 25 i oe Revenue from Operations =¥ 100 + @ 25 =% 125 venue from Operations (Sale) is € 125 then Gross Profit = % 25‘An Aid to Accountancy ~ “4 GrossProfit moo Revenue from Operations. &1,20,000 = £120,000 199 = 208 %6,00,000 at gue of New Shares for Cash. ~ Reason: Shareholders’ Funds will increase. (© 1G; 2 and 3H) Or (© 1—D; 2-4; 3—B and 4—C (©) %1,54,800 Working Note: CALCULATION OF CASH FLOW FROM OPERATING ACTIVITES Particulars z ‘Net Profit before Tax (Net Profit + Transfer to Reserve) 130,000 “Adjustment of Non-cash & Non-operating ltrs: Depreciation 20,000 ‘Goodwill Amortised 7,000 (3,000) ‘Gain on Sale of Machine ‘Operating Profit before Working Capital Changes ‘Change in Current Assets & Current Liabtes Increase in Trade Payables Increase in Trade Receivables Increase in Prepaid Expenses ‘Decrease in Outstanding Expenses. Cash Flow from Operating Activities 31. “S.No. i ol item Major Head ean rovsion fora . forTox Gurren Liabilities _| Short-term Provisions | (i)_| Interest accrued butnot due onloans | Current Liabiit 7 les (ii), | Computer and Computer Equipment | Non-current Asset ets Other Current Liabilities Property, Plant and Equipment al Assets—Property, Plant and Equib! a ment )_| Goods purchased fortrading Current Assets (| CopitalWorkin Progress N vents epecurent Assets ne { Assets—Capital Work-in-Progress Short-term Borrowings ee a “()_| Current Maturities of Long:term Debts Current Liabilities£ Test Papers = tov 4, @) Gostof Revenue from Operations = & 2,50,000 x 12 = 10,00,000 2% ig om Operations = % 10,00,000 + % 2 Working Capital = Gurre Revenue 50,000 = % 12,50,000 1. Assets ~ Current Liabilitic =%5,00,000 ~ & 1,50,000 = % 3,50,000 Revenue from Operations ~ Working Capital _ £12,50,000 ~ %3,50,000 Revenue from Ope Net Assets/Capital Employed _ %3,60,00,000 ~ %1,20,00,000 sales ~ Sales Return 3,85,00,000 - % 25,00,000 = % 3,60,00,000 2. Capital Employed = Equity Share Capital + 9% Preference Share Capital + Reserves and Surplus + 10% Debentures + 10% Bank Loan =%40,00,000 + % 30,00,000 + ¥ 10,00,000 + & 20,00,000 + & 20,00,000 = 1,20,00,000. Working Capital Turnover Ratio = 3.57 times, (6) Net Assets Turnover Ratio = times. Notes: 1, Revenue from Operation: 2. COMMON-SIZE STATEMENT OF PROFIT &LOSS forthe year ended 31st March, 2023 faticlars NoteNo. | Absolute | (8) of Revenue Amount ®)__| from Operations [Revenue from Operations 25,38,000 100.00 Other Income 38,000 150 Total Revenue 25,7600 701.50 I Epenses [Sell (@) Cost of Materials Consumed 400,000 55.16 (0) Other Expenses 5,00,000 19.70 Total Expenses 19,00,000 7486 | Profit before Tax (I~ II) S180 26.64 IN Tax Paid 3,38,000 1332 V, Profit after Tax (IIl- IV) 338,000. 1332 Or SIMCO Ltd. COMMON-SIZE BALANCE SHEET as at 31st March, 2022 and 2023 | Pericles NoteNo, | Absolute Amounts Percentage of Balance Sheet Total 31st March, | 31st March, | 31st March, | 31st March, 2022(%)_| 2023) _|_2022(%) | 2023 (4) " EQUITY AND LIABILITIES 4 Shareholders’ Funds ae ee oe 2008 Non-current Liabil ‘ 00. : . 3. Current Liabilities 2,00,000_| _3,00,000 25.00. 18.75 Total 800,000 | 16,00,000 100.00 100.00ee 62.50 40,00,000 6250 47.50 , 7780 5 oom | 3255-000 Purchase of Machinery Sale of Machinery (WN 1) Cosh Used in Investing Activities Cash Flow from Financing Acti Proceeds rom tsue of Equity Shares © 90.00.000- £60,00,000) 1 Redemption of Debentures szsnnn.o00 -€30.00,000) +€ 200.000 Premium cof Redemption) p20 Interest on Debentures (6,50000) Dividend paid on Equity Shares | (3,00,000)_ ‘Cash Used in Financing Activities (50,000) Working Notes: 1. Dr. MACHINERY ACCOUNT Gr. Particulars %_| Particulars z Fo Balance b/d 720,00,000 | By Bank A/c (Sale) (WN3) -4,10,000, To Statement ‘of Profit & Loss (Gain on Sale) 30,000 | By ‘Accumulated Depreciation Ale 20,000 To BankAlc (Balancing Figure) (Purchase) 12,00,000 | By Balance c/d -28,00,000 3230000 | 32,30,000 2. Dr. ACCUMULATED. DEPRECIATION (MACHINERY) ACCOUNT G. Particulars | Particulars z Fo Machinery Ae (rransfer) Galancing Figure) 70,000 | By Balance b/d 60,000 To Balancing dd 90,000 | By Statement of Profit & Loss 50,000 7,10,000 [oe Sold = Cost - Accumulated Depreciation 4,00,000 - & 20,000 = % 3,80,000 sale Value of Machine Sold = Book Value + Gain on Sale 3,80,000 + ® 30,000 = % 4,10,000. 3, Book Value of Machine