Question 17 Chapter 6 - Unimax Class 12 Part 1

Question 17 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 17 Chapter 6 – Unimax Class 12 Part 1: –

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

17. L, M and N are equal partners. N retires and surrenders 3/5th of his share in favour of L and 2/5th of his share in favour of M. Calculate new profit sharing ratio. Assuming that goodwill of firm is Rs. 30000 pass necessary journal entry for goodwill on retirement of N.

The solution of Question 17 Chapter 6 – Unimax Class 12 Part 1: –

(i) Calculation of new profit sharing ratio :
As N has surrendered 3/5 of his share in favour of L and 2/5 of his share in favour of M, so gaining ratio is 3 : 2 (3/5 : 2/5)
L’s new share = Old share + gain
= 1/3 + (3/5 of N’s share)
= 1/3 + (3/5 of 1/3)
= 8/15
M’s new share = Old share + gain
= 1/3 + (2/5 of N’s share)
= 1/3 + (2/5 of 1/3)
= 7/15
New profit sharing ratio = 8 : 7 (L : M)

Date	Particulars		L.F.	Debit	Credit

	L’s Capital a/c	Dr.		6,000
	M’s Capital A/c	Dr.		4,000
	To N’s Capital a/c				10,000
	(Being retiring partner N compensated by L and M in their gaining ratio)

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)

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

The solution of Question 17 Chapter 6 – Unimax Class 12 Part 1: –

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

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

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