Question

Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3 : 2 : 1. Manisha retired and goodwill of the firm is valued at ₹ 1,80,000. Aparna and Sonia decided to share future profits in the ratio of 3 : 2. Pass necessary Journal entries.

Answer 1

Journal 

Date	Particulars		L.F.	Amount (₹)	Amount (₹)
	Aparna’s Capitals A/c	Dr.		18,000
	Sonia’s Capital A/c	Dr.		42,000
	To Manisha’s Capital A/c				60,000
	(Manisha’s share of goodwill adjusted to Aparna’s and Sonia’s Capital Account in their gaining ratio)

Working Notes:

WN1: Calculation of Manisha’s Share in Goodwill

Manisha's share = Firm's Goodwill x Mnaisha's profit share

Manisha's share = `1,80,000 xx 1/3 = 60,000`

WN2: Calculation of Gaining Ratio
Gaining Ratio = New Ratio − Old Ratio

Aparna's gain = `3/5 - 3/6 = 3/30`

Sonia's gain = `2/5 - 1/6 = 7/30`

Gainng ratio = `3 : 7`

Aparna's share= `60,000 xx 3/10 = 18,000`

Sonia's share = `60,000 xx 7/10 = 42,000`