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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A, B and C were partners sharing profits in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. B died on 30th June, 2024. On his death, goodwill of the firm was valued at ₹6,00,000. B’s share of profit or loss till the date of death was to be calculated on the basis of the previous year’s result, which was a loss of ₹15,00,000. Pass the necessary Journal entries for goodwill and his share of loss.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2024 Jun 30 | A’s Capital A/c Dr. (2,00,000 × 3/4) | 1,50,000 | ||
| C’s Capital A/c Dr. (2,00,000 × 1/4) | 50,000 | |||
| To B’s Capital A/c | 2,00,000 | |||
| (B’s share of goodwill adjusted through A’s and C’s Capital Accounts in gaining ratio 3 : 1) | ||||
| Jun 30 | B’s Capital A/c Dr. | 1,25,000 | ||
| To Profit & Loss Suspense A/c | 1,25,000 | |||
| (B’s share of loss till the date of death debited to his Capital Account) |
Working Notes: B’s share of goodwill = 6,00,000 × 2/6 = ₹2,00,000, borne by A and C in gaining ratio 3 : 1 (old ratio with B removed). B’s share of loss (1st April to 30th June, 2024, i.e. 3 months) = 15,00,000 × 2/6 × 3/12 = ₹1,25,000.
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This guide covers "T.S. Grewal Class 12 Chapter 6 Q.17 - Death of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 6 - Death of a Partner.
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