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Question 20 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 20 Chapter 6 of +2- Part
Q-20 - CH-6 - Usha +2 Book 2018 - Solution

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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.DebitCredit
a)A’s capital A/cDr. 2,00,000 
 B’s capital A/cDr. 1,20,000 
 C’s capital A/cDr. 80,000 
 To Z’s capital A/c   4,00,000
 (Being goodwill written off in new ratio )    
      
b)B’s capital A/cDr. 1,28,000 
 C’s capital A/cDr. 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=31
102
     
 =2  
 10  
C’s gain=21
102
     
 =3  
 10  

Comment if you have any questions.

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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 Firm

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