# Question 21 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.21 Chapter No.6 - T.S. Grewal +2 Book 2019-Solution

Question 21 Chapter 6 of +2-A

21. A, B, C and D are partners in firm sharing profits, in the ratio of 2: 1 : 2: 1. On the retirement of C, Goodwill was valued 1,80,000. A B and D decide to share future profits equally. Pass the necessary journal entry for the treatment of goodwill.

## The solution of Question 21 Chapter 6 of +2-A: –

 Date Particulars L.F. Debit Credit B’s Capital A/c Dr 30,000 D’s Capital A/c Dr 30,000 To N’s Capital A/c 60,000 (Being Adjustment of C′s share of goodwill)

Working Note: –

#### i. Calculation of B’s share of goodwill

A :B :C 😀 = 2:1:2:1(Old ratio)
A :B :C 😀 = 2:1:2:1(Old ratio)

#### ii Gaining Ratio

 A’s Gain = 1 – 2 3 6 = 2 – 2 6 = 0 6
 B’s Gain = 1 – 1 3 6 = 2 – 1 6 = 1 6
 D’s Gain = 1 – 1 3 6 = 2 – 1 6 = 1 6

#### Calculation of Retiring Partner’s Share of Goodwill

 C’s share of goodwill = 1,80,000 X 2 6 = Rs 60,000

C’s share of goodwill will be brought by B and D in their gaining ratio1:1

 Therefore, B’s and D’s Capital will be debited with = 60,000 X 2 6 = Rs 30,000

#### 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