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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Sunil, Shahid and David are partners sharing profits and losses in the ratio of 4 : 3 : 2. Shahid retires and the goodwill is valued at ₹72,000. Sunil and David decide to share future profits and losses in the ratio of 5 : 3. Calculate Shahid’s share of goodwill and pass the Journal entry for goodwill.
Shahid’s share of goodwill = ₹72,000 × 3/9 = ₹24,000. Gaining ratio: Sunil = 5/8 – 4/9 = 13/72; David = 3/8 – 2/9 = 11/72 → 13 : 11.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Sunil’s Capital A/c Dr. (24,000 × 13/24) | 13,000 | |||
| David’s Capital A/c Dr. (24,000 × 11/24) | 11,000 | |||
| To Shahid’s Capital A/c | 24,000 | |||
| (Shahid’s share of goodwill adjusted through the gaining partners’ capitals in 13 : 11) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 5 Q.12 - Retirement of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Retirement of a Partner.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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