Question

Samta, Mamta and Geeta were partners in a firm sharing profits and losses in the ratio of 11 : 5: 4. On 31^st March, 2025 Samta died. On Samta’s death, the goodwill of the firm was valued at ₹ 1,80,000. The necessary journal entry for the treatment of goodwill on Samta’s death will be:

Options

• Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Samta’s Capital A/с   ...Dr.	99,000
  To Mamta’s Capital A/c		55,000
  To Geeta’s Capital A/c		44,000

• Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Mamta’s Capital A/c   ...Dr.	1,00,000
  Geeta’s Capital A/c   ...Dr.	80,000
  To Samta’s Capital A/c		1,80,000

• Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Samta’s Capital A/c   ...Dr.	1,80,000
  To Mamta’s Capital A/c		1,00,000
  To Geeta’s Capital A/c		80,000

• Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Mamta’s Capital A/с   ...Dr.	55,000
  Geeta’s Capital A/c   ...Dr.	44,000
  To Samta’s Capital A/c		99,000

Answer 1

Particulars	Dr. Amount (₹)	Cr. Amount (₹)
Mamta’s Capital A/с   ...Dr.	55,000
Geeta’s Capital A/c   ...Dr.	44,000
To Samta’s Capital A/c		99,000

Explanation:

Mamta’s Capital A/c = Dr. ₹ 55,000

Geeta’s Capital A/c = Dr. ₹ 44,000

To Samta’s Capital A/c = ₹ 99,000

Old Profit Sharing Ratio: 11 : 5 : 4

Samta’s Share of Profit: `11/20`

Gaining Ratio (Mamta & Geeta): 5 : 4

1. Calculate Samta’s Share of Goodwill

Total Firm Goodwill = 1,80,000

Samta’s Share = 1,80,000 × `11/20` = 99,000

2. Distribute among Gaining Partners

Mamta’s Contribution: 99,000 × `5/9` = 55,000

Geeta’s Contribution: 99,000 × `4/9` = 44,000