CBSE (Arts) Class 12CBSE
Share
Notifications

View all notifications

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. - CBSE (Arts) Class 12 - Accountancy

Login
Create free account


      Forgot password?

Question

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.

Solution

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

 

  Is there an error in this question or solution?

Video TutorialsVIEW ALL [1]

Solution 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. Concept: Methods of Capital Accounts - Fixed and Fluctuating Capital Method.
S
View in app×