# Question 18 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.18 Chapter No.6 - T.S. Grewal +2 Book 2019-Solution

Question 18 Chapter 6 of +2-A

18. X, Y and Z are partners sharing profits in the ratio of 3 : 2 : 1. Goodwill is appearing in the books at a value of 60,000. Y retires and at the time of Y’s retirement, goodwill is valued at 84,000. X and Z decided to share future profits in the ratio of 2 : 1. Pass the necessary Journal entries through Goodwill Account

## The solution of Question 18 Chapter 6 of +2-A: –

 Date Particulars L.F. Debit Credit X’s Capital A/c Dr 30,000 Y’s Capital A/c Dr 20,000 Z’s Capital A/c Dr 10,000 To Goodwill A/c 60,000 (BeingGoodwill wrote off ) X’s Capital A/c Dr 14,000 Z’s Capital A/c Dr 14,000 To Y’s Capital A/c 28,000 (BeingAdjustment of Y′s share of goodwill)

Working Note: –

X :Y :Z = 3:2:1(Old ratio)
X :Z = 2:1(New ratio)

#### Calculation of Gaining Ratio: –

Gaining Ratio = New Ratio – Old Ratio

 X’s Gain = 2 – 3 3 6 = 4 – 3 6 = 1 6
 Z’s Gain = 1 – 1 3 6 = 2 – 1 6 = 1 6

#### X:Z = 1: 1

Calculation of Retiring Partner’s Share of Goodwill

 Y’s share of goodwill = 84,000 X 2 6 = 28,000

 Therefore, X’s Capital A/c will be debited with = 28,000 X 1 2 = 14,000
 Therefore, Z’s Capital A/c will be debited with = 28,000 X 1 2 = 14,000

#### 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. 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