Cash book is a subsidiary book as well as a principal book .

Revaluation Account Particulars ₹ Particulars ₹ To Stock 1,500 By Land & Building 25,000 To Partners: (Revaluation Profit) By Provision for doubtful debt 2,000 Seema 8,500 Yedhant 8,500 Zoya 8,500 27,000 27,000 Partners’ Capital Accounts Particulars Seema Yedhant Zoya Particulars Seema Yedhant Zoya To Zoya 4,375 4,375 - By Bal b/d. 1,00,000 75,000 75,000 To Zoya’s Executor - - 98,125 By General reserve 4,000 4,000 4,000 By Seema & Yedhant - - 8,750 To Bal. c/d 1,08,125 83,125 By Profit and Loss Adjustment* (suspense) A/c - - 1,875 By Revaluation 8,500 8,500 8,500 1,12,500 87,500 98,125 1,12,500 87,500 98,125 *Profit and Loss Adjustment = [(₹ 25,000 +20,000 +22,500)/3] x 3/12 x 1/3 = 1,875 Balance Sheet of Firm as on 1st July, 2024 Particulars ₹ Particulars ₹ Seema 1,08,125 Land & Building 1,75,000 Yedhant 83,125 Investment 65,000 Zoya Executor 98,125 Stock 13,500 Creditors 20,000 Trade receivable 35,000 Profit & Loss Adjustment 1,875 Cash in hand 7,000 Cash at bank 12,000 3,09,375 3,09,375 Calculation of goodwill and Zoya’s share Average of last five year’s profits and losses for the year ended on 31st March. 31.3.2020 28,750 31.3.2021 35,000 31.3.2022 22,500 31.3.2023 20,000 31.3.2024 25,000 Total 1,31,250 Average profit = 26,250 Goodwill at 1 year purchase = 26,250 x 1 = 26,250 Zoya’s Share of Goodwill = 26,250 X 1/3 = 8,750 Which is contributed by Seema and Yedhant in their gaining Ratio Seema = 8750 X 1/2 = 4375 Yedhant = 8750 X 1/2 = 4375