Question 22 Chapter 3 of Class 12 Part - 1 VK Publication

Question 22 Chapter 3 of Class 12 Part – 1

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The solution of Question 22 Chapter 3 of Class 12 Part – 1: –

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

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

22. X, Y and Z are partners sharing profits and losses in the ratio of 5:4:1. It was decided the
with effect from 1st April, 2018 the profit-sharing ratio will be 9:6:5. Goodwill is to be valued at 2 years’ purchase of average of 3 years’ profits. The profits for the year ended on 31st March, 2016,2017 and 2018 were Rs. 48,000, Rs. 42,000 and Rs. 60,000 respectively. Pass the necessary journal entry for the treatment of goodwill without opening Goodwill Account.

The solution of Question 22 Chapter 3 of Class 12 Part – 1: –

Sacrificing Ratio = Old Share – New Share

X	=	5	–	9
		10		20

	=	10 – 9
	=	20

	=	1	(Sacrifice)
		20

Y	=	4	–	6
		10		20

	=	8 – 6
	=	20

	=	2	(Sacrifice)
		20

Z	=	1	–	5
		10		20

	=	2 – 5
	=	20

	=	-3	(Gaining)
		20

Thus Proportionate Share of Goodwill to be adjusted

X = 1,00,000	X	1
		20

= 5,000

Y = 1,00,000	X	2
		20

10,000

Z = 1,00,000	X	3
		20

15,000

Journal Entry

Date	Particulars		L . F	Dr. ₹	Cr. ₹
2018	Z’s Capital Account	Dr.		15,000
April 1	To X’s Capital Account				5,000
	To Y’s Capital Account				10,000
	( Being proportionate share of Goodwill adjusted among partners)