# X, Y And Z Are Partners Sharing Profits in the Ratio of 3 : 2 : 1. Goodwill is Appearing in the Books at a Value Of ₹ 60,000. - Accountancy

Numerical

X, Y and Z are partners sharing profits in the ratio of 3 : 2 : 1. Goodwill is appearing in the books at a value of ₹ 60,000. Y retires and at the time of Y's retirement, goodwill is valued at ₹ 84,000. X and Z decided to share future profits in the ratio of 2 : 1. Pass the necessary Journal entries through Goodwill Account.

#### Solution

Journal

 Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) X’s Capital A/c Dr. 30,000 Y’s Capital A/c Dr. 20,000 Z’s Capital A/c Dr. 10,000 To Goodwill A/c 60,000 (Goodwill written off) Dr. 14,000 X’s Capital A/c Dr. 14,000 Z’s Capital A/c 28,000 To Y’s Capital A/c (Adjustment of Y’s share of goodwill)

Working Notes:

WN1:Calculation of Gaining Ratio

"X : Y : Z" = 3 : 2 : 1 (Old ratio)

"X : Z" = 2 : 1 (New ratio)

Gaining ratio = New ratio - old ratio

X's gain = 2/3 - 3/6 = 1/6

Z's Gain = 1/3 - 1/6 = 1/6

"X : Z" = 1 : 1

WN2: Calculation of Retiring Partner’s Share of Goodwill

Y's share of goodwill will be brought by X and Z in their gaining ratio 1: 1

Therefore, X's Capital A/c will be debited with 28,000 xx 1/2 = "Rs" 14,000

And, Y's Capital A/c will be debited with 28,000 xx 1/2 = "Rs" 14,000

Concept: Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio
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#### APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 6 Retirement/Death of a Partner
Exercise | Q 18 | Page 79