Question 15 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 15 Chapter 6 - Unimax Class 12 Part 1 - 2021

15. X, Y and Z were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Z retired and the new profit sharing ratio between X and Y was 1 : 2. On Z’s retirement the goodwill of the firm was valued at Rs. 30000. Pass necessary journal entry for the treatment of goodwill of Z’s retirement.

The solution of Question 15 Chapter 6 - Unimax Class 12 Part 1: -

Journal

Date	Particulars		L.F.	Debit	Credit
	Y’s Capital a/c	Dr.		10,000
	To X’s Capital A/c				5,000
	To Z’s Capital a/c				5,000
	(Being sacrificing partner X and retiring partner Z compensated by gaining partner Y on account of goodwill)

Working Note:

New Share	Old Share	Difference
X	1		3		1	-	3	=	-1	(sarifice)
	3		6		3		6		6
Y	2		2		2	-	2	=	2	(Gain)
	3		6		3		6		6

Partner Y will transfer Rs. 10000 (30000 X 2/6) to capital accounts of X and Z.

https://tutorstips.com/retirement-of-a-partner-explained-with-illustration/

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication