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Question 14 Chapter 6 of +2-Part-1
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14. (Valuation of retiring Partner’s Share in goodwill) L, M and O are partners, sharing profits and losses in the ratio of 4 : 3 : 2. M retires and the goodwill is valued at Rs. 72,000 Calculate M’s share in goodwill and pass necessary journal entry for the same, without opening goodwill account. L and O decided to share future profits and losses in 5: 3 ratio.
The solution of Question 14 Chapter 6 of +2 Part-1: –
Total Goodwill of the firm (given ) = Rs 72,000
| M’s share in total profit | = | 3 |
| 9 |
| M share in goodwill | = | 72,000 | x | 3 |
| 9 | ||||
| = | Rs 24,000 |
Gaining ratio = New share – Old share
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| L’s gain | = | 5 | – | 4 |
| 8 | 9 | |||
| = | 13 | |||
| 72 |
| O’s gain | = | 3 | – | 2 |
| 8 | 9 | |||
| = | 11 | |||
| 72 |
Gaining ratio = 13 : 11
| Goodwill payable to L | = | 24,000 | x | 13 |
| 24 | ||||
| = | Rs 13,000 |
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| Goodwill payable to O | = | 24,000 | x | 11 |
| 24 | ||||
| = | Rs 11,000 |
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| a) | L’s capital A/c | Dr. | 13,000 | ||
| O’s capital A/c | Dr. | 11,000 | |||
| To M’s capital A/c | 24,000 | ||||
| (Being goodwill adjusted in gaining ratio 13: 11) | |||||
Comment if you have any questions.
End of Solution
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
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Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Check out Part 2 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication
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