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Neetu, Meetu, and Teetu Were Partners in a Firm. on 1st January 2018, Meetu Retired. on Meetu'S Retirement, the Goodwill of the Firm Was Valued at Rs 4,20,000. - Accountancy

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प्रश्न

Neetu, Meetu, and Teetu were partners in a firm. On 1st January 2018, Meetu retired. On Meetu's retirement, the goodwill of the firm was valued at Rs 4,20,000.

Pass necessary journal entry for the treatment of goodwill on Meetu's retirement.

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उत्तर

Meetu’s Share in Profits: 1/3 (as the profit sharing ratio is not given, it is assumed to be equal).

Goodwill of the firm = Rs 4,20,000

Meetu's share of Goodwill = `420000 xx 1/3 = Rs 140000`

Journal
Date Particulars L.F.

Dr.

Rs

Cr.

Rs

2018
Jan 1

Neetu's Capital A/c       Dr.

Teetu's Capital A/c       Dr.

           To Meetu's Capital A/c

(Being goodwill adjusted in 1:1)

 

70,000

70,000

 

 

 

 

1,40,000

 

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2017-2018 (March) Delhi Set 1
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