Question 18 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 18 Chapter 6 - Unimax Class 12 Part 1 - 2021

18. B retires from the firm of A, B and C sharing profits in the ratio of 3 : 2 : 1. For the purpose of B’s retirement goodwill of the firm has been valued at Rs. 10800 and B’s share of the same is adjusted into the capital accounts of A and C who are going to share profits equally in future. Pass necessary journal entries to record this.

The solution of Question 18 Chapter 6 - Unimax Class 12 Part 1: -

Date	Particulars		L.F.	Debit	Credit
	C’s Capital a/c	Dr.		3,600
	To B’s Capital A/c				3,600
	(Being retiring partner B compensated by gaining partner C on account of goodwill)

 

	New Share		Old Share		Difference
A	1		3		1	-	3	=	0	(no gain, no loss)
	2		6		2		6
B	1		1		1	-	1	=	2	(Gain)
	2		6		2		6		6

Gaining partner B will transfer Rs. 3,600 (10,800 X 2/6) from his capital a/c to retiring partners capital a/c.

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