Question 20 Chapter 6 of +2-Part-1
20. (Goodwill Appear in the Books) A, B and C are partners sharing in the ratio of 5: 3:2 respectively. A retires from the firm. On A’s retirement goodwill has been valued at Rs. 6,40,000. There is a goodwill account in the books of the firm with a balance of Rs. 4,00,000. Give the necessary journal entries to record this arrangement assuming that B and C decide to share future profits and losses equally.
The solution of Question 20 Chapter 6 of +2 Part-1: –
| Journal |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| a) | A’s capital A/c | Dr. | 2,00,000 | ||
| B’s capital A/c | Dr. | 1,20,000 | |||
| C’s capital A/c | Dr. | 80,000 | |||
| To Goodwill A/c | 4,00,000 | ||||
| (Being goodwill written off in new ratio ) | |||||
| b) | B’s capital A/c | Dr. | 1,28,000 | ||
| C’s capital A/c | Dr. | 1,92,000 | |||
| To A’s capital A/c | 3,20,000 | ||||
| (Being goodwill adjusted through capital a/cs in gaining ratio i.e. 2 : 3) | |||||
Calculation of gaining ratio :
Old Ratio A:B: C = 5:3: 2
New Ratio B: C = 1 : 1
| B’s gain | = | 1 | – | 3 |
| 2 | 10 | |||
| = | 2 | |||
| 10 |
| C’s gain | = | 1 | – | 2 |
| 2 | 10 | |||
| = | 3 | |||
| 10 |
Gaining ratio = 2 : 3
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)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
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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)
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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
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