Question 04 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 04 Chapter 4 of +2- Part-

Question 04 Chapter 4 of +2-Part-1

4. (Goodwill doesn’t exist) X, Y and Z are partners sharing profits in 5:3:2 ratio. From 1st January 2016, they decide to share profits and losses in 2:5:3 ratio. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill is valued at Rs.54,000. Give the necessary single adjusting entry to record the above transaction.

 

The solution of Question 04 Chapter 4 of +2 Part-1: – 

Old Ratio of X, Y, & Z = 5 : 3: 2
New Ratio of X, Y, & Z = 2: 5 : 3

Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old Ratio – New Ratio

X’s Share Sacrificing/Gaining = 5 2
10 10
  = 5 – 2
  10
  = 3 (Sacrificing)
  10

 

Y’s Share Sacrificing/Gaining = 3 5
10 10
  = 3 – 5
  10
  = -2 (Gaining)
  10

 

 

Z’s Share Sacrificing/Gaining = 2 3
10 10
  = 2 – 3
  10
  = -1 (Gaining)
  10

 

In the Books of _______________
Date Particulars
L.F. Debit Credit
2016          
Jan 1 Y’s Capital A/c (54,000*2/10) Dr.   10,800  
  Z’s Capital A/c (54,000*1/10) Dr.   5,400  
  To X’s Capital A/c       16,200
  (Being amount of goodwill adjusted as the change in profit sharing ratio)      

 

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis 

Chapter No. 4 – Cash Flow Statement

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

2 Book 1 min - Question 04 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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