Q.No.15 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 15 Chapter 6 of +2-A

Aparna, Manisha, and Sonia are partners sharing profits in the ratio of 3: 2: 1. Manisha retired and the 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.

The solution of Question 15 Chapter 6 of +2-A: -

 

Date	Particulars		L.F.	Debit	Credit
	Aparna's Capital A/c	Dr		18,000
	Sonia's Capital A/c	Dr		42,000
	To Manisha's Capital A/c				60,000
	(Being share of Manisha’s goodwill adjusted)

Working Note: -

Old Ratio of Aparna, Manisha, and Sonia = 3: 2: 1
Manisha retires from the firm

New Ratio of Aparna and Sonia = 3: 2

Calculation of Gaining Ratio: -

Gaining Ratio = New Ratio - Old Ratio

Aparna’s gaining Share	=	3	-	3
		5		6
	=	18	-	15
		30
	=	3
		30

 

Sonia’s Gaining Share	=	2	-	1
		5		6
	=	12	-	5
		30
	=	7
		30

 

Firm’s Share of Goodwill = 1,80,000

Manisha's Share of Goodwill =  Firm’s Goodwill X Manisha's Shares

Manisha's Share of Goodwill	=	1,80,000	X	1
				3
	=	60,000

Gaining Ratio of Aparna and Sonia = 3:7

Aparna’ gain	=	Manisha's Goodwill	X	Gaining share of Aparna
	=	60,000	X	3
				10
	=	18,000

 

Sonia’ gain	=	Manisha's Goodwill	X	Gaining share of Sonia
	=	60,000	X	7
				10
	=	42,000

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

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