Question

A, B and C are partners sharing profits in the ratio of 3 : 4 : 5. B retires and the goodwill of the firm is valued at ₹ 42,000. A and C decide to share profits in the ratio of 3 : 4. Journal entry will be:

पर्याय

• A’s Capital A/c      ...Dr.	6,000
  C’s Capital A/c      ...Dr.	8,000
  To B’s Capital A/c		14,000

• A’s Capital A/c      ...Dr.	7,500
  C’s Capital A/c      ...Dr.	6,500
  To B’s Capital A/c		14,000

• A’s Capital A/c      ...Dr.	22,500
  C’s Capital A/c      ...Dr.	19,500
  To B’s Capital A/c		42,000

• B’s Capital A/c      ...Dr.	14,000
  To A’s Capital A/c		7,500
  To C’s Capital A/c		6,500

Answer 1

A’s Capital A/c      ...Dr.	7,500
C’s Capital A/c      ...Dr.	6,500
To B’s Capital A/c		14,000

Explanation:

Old Ratio = 3 : 4 : 5

New Ratio = 3 : 4

Goodwill of the firm = ₹ 42,000

Gaining Ratio = New ratio – Old Ratio 

A = `3/7-3/12=(36-21)/84=15/84`

C = `4/7-5/12=(40-35)/84=13/84`

Gaining Ratio = `15/84:13/84`

Gaining Ratio = 15 : 13

B’s share on Goodwill = `42,000xx4/12` = 14,000

A’s share = `14,000xx15/28` = 7,500

C’s share = `14,000xx13/28` = 6,500