Question 15 Chapter 6 – Unimax Class 12 Part 1 – 2021
Table of Contents
15. X, Y and Z were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Z retired and the new profit sharing ratio between X and Y was 1 : 2. On Z’s retirement the goodwill of the firm was valued at Rs. 30000. Pass necessary journal entry for the treatment of goodwill of Z’s retirement.
The solution of Question 15 Chapter 6 – Unimax Class 12 Part 1: –
Journal
| Date | Particulars | L.F. | Debit | Credit | |
| Y’s Capital a/c | Dr. | 10,000 | |||
| To X’s Capital A/c | 5,000 | ||||
| To Z’s Capital a/c | 5,000 | ||||
| (Being sacrificing partner X and retiring partner Z compensated by gaining partner Y on account of goodwill) |
Working Note:
| New Share | Old Share | Difference | ||||||||
| X | 1 | 3 | 1 | – | 3 | = | -1 | (sarifice) | ||
| 3 | 6 | 3 | 6 | 6 | ||||||
| Y | 2 | 2 | 2 | – | 2 | = | 2 | (Gain) | ||
| 3 | 6 | 3 | 6 | 6 | ||||||
Partner Y will transfer Rs. 10000 (30000 X 2/6) to capital accounts of X and Z.
Retirement of a Partner – Explained with Illustration
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication