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

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

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Question 18 Chapter 6 of +2-A

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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: –

 

DateParticulars
L.F.DebitCredit
 X’s Capital A/cDr 30,000 
 Y’s Capital A/cDr 20,000 
 Z’s Capital A/cDr 10,000 
 To Goodwill A/c   60,000
 (BeingGoodwill wrote off )   
      
      
      
 X’s Capital A/cDr 14,000 
 Z’s Capital A/cDr 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: –

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Gaining Ratio = New Ratio – Old Ratio

X’s Gain=23
36
     
 =43
 6
     
 =1  
 6  

 

Z’s Gain=11
36
     
 =21
 6
     
 =1  
 6  

X:Z = 1: 1

Calculation of Retiring Partner’s Share of Goodwill

Y’s share of goodwill=84,000X2
6
     
 =28,000  

 

Therefore, X’s Capital A/c will be debited with=28,000X1
2
     
 =14,000  

 

Therefore, Z’s Capital A/c will be debited with=28,000X1
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)

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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