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

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

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Question 21 Chapter 6 of +2-A

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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: –

 

DateParticulars
L.F.DebitCredit
 B’s Capital A/cDr 30,000 
 D’s Capital A/cDr 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

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A’s Gain=12
36
     
 =22
 6
     
 =0  
 6  

 

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

 

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

A:B:D = 0: 1: 1

Calculation of Retiring Partner’s Share of Goodwill

C’s share of goodwill=1,80,000X2
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=60,000X2
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)

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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