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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A, B, C and D are partners in a firm sharing profits in the ratio of 2 : 1 : 2 : 1. On the retirement of C, goodwill was valued at ₹1,80,000. A, B and D decide to share future profits equally. Pass the necessary Journal entry for the treatment of goodwill.
C’s share = ₹1,80,000 × 2/6 = ₹60,000. Gaining ratio: A = 1/3 – 2/6 = Nil; B = 1/3 – 1/6 = 1/6; D = 1/3 – 1/6 = 1/6 → B : D = 1 : 1.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| B’s Capital A/c Dr. | 30,000 | |||
| D’s Capital A/c Dr. | 30,000 | |||
| To C’s Capital A/c | 60,000 | |||
| (C’s share of goodwill borne by the gaining partners B and D in 1 : 1) |
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.22 - 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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