Question 11 Chapter 6 - Unimax Class 12 Part 1

Question 11 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 11 Chapter 6 – Unimax Class 12 Part 1: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

11. A, B and C are partners sharing profits and losses in the ratio of 1/2 : 1/3 : 1/6 respectively. A retired from the firm and B and C decide to share the future profits in ratio of 5 : 3.
Goodwill does not appear in the books of firm, but it is expected to be worth Rs. 24000. Pass entries for adjustment of goodwill on A’s retirement.

The solution of Question 11 Chapter 6 – Unimax Class 12 Part 1: –

Journal

Date	Particulars		L.F.	Debit	Credit

	B’s Capital a/c	Dr.		7,000
	C’s Capital A/c	Dr.		5,000
	To A’s Capital a/c				12,000
	(Being compensation made by continuing partners B and C to retiring partner A on account of goodwill)

Working Note:
Calculation of gaining ratio :
B’s gain = New share – Old share
= 5/8 – 1/3 = 7/24
C’s gain = New share – Old share
= 3/8 – 1/6 = 5/24
Gaining ratio = 7 : 5 (B : C)