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Question 20 Chapter 6 of +2-Part-1
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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 Z’s capital 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 written off in old ratio) | |||||
Old Ratio A:B: C = 5:3: 2
New Ratio B: C = 1 : 1
B’s gain | = | 3 | – | 1 |
10 | 2 | |||
= | 2 | |||
10 |
C’s gain | = | 2 | – | 1 |
10 | 2 | |||
= | 3 | |||
10 |
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Comment if you have any questions.
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- 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)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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