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A, B and C are sharing profits in the ratio of 4 : 3 : 2. Goodwill is appearing in the books at a value of ₹ 42,000. - Accounts

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प्रश्न

A, B and C are sharing profits in the ratio of 4 : 3 : 2. Goodwill is appearing in the books at a value of ₹ 42,000. C retires and on the day of C’s retirement Goodwill is valued at ₹ 63,000. Pass the necessary journal entries.

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उत्तर

Journal
Date Particulars L.F. Debit (₹) Credit (₹)
(1) A’s Capital A/c     ...Dr.   18,667  
B’s Capital A/c     ...Dr.   14,000  
C’s Capital A/c     ...Dr.   9,333  
      To Goodwill A/c     42,000
(Being Goodwill written off)      
(2) A’s Capital A/c     ...Dr.   8,000  
B’s Capital A/c     ...Dr.   6,000  
      To C’s Capital A/c     14,000
(Being Value goodwill adjusted)      

Calculation of new profit sharing & gaining ratio 

Profit sharing ratio of A, B and C is 4 : 3 : 2

C retired

New profit sharing ratio of A and B after discarding Rakesh share

⇒ 4 : 3

In the absence of any additional information gaining ratio is always equal to new ratio. 

General ratio of A & B is 4 : 3

Calculation of Partner's share in the goodwill of the firm.

Valued goodwill of the firm = ₹ 63,000

C’s share in goodwill = `63000xx2/9` = ₹ 14000

A & B will contribute it in their gaining ratio i.e. 4 : 3

A will contribute = `14000xx4/7` = ₹ 8,000

B will contribute = `14000xx3/7` = ₹ 6,000

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अध्याय 4: Retirement or Death of a Partner - PRACTICAL QUESTIONS [पृष्ठ ४.१३१]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
अध्याय 4 Retirement or Death of a Partner
PRACTICAL QUESTIONS | Q 9. | पृष्ठ ४.१३१
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