Advertisement

Question 22 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 22 Chapter 6 of +2-A
Question No.22 Chapter No.6 - T.S. Grewal +2 Book 2019-Solution

Advertisement

Question 22 Chapter 6 of +2-A

Advertisement

22. A, B, and C were partners in a firm sharing profits in the ratio of 6: 5: 4. Their capitals were A − 1,00,000; B − 80,000 and C − 60,000 respectively. On 1st April 2009, A retired from the firm and the new profit sharing ratio between B and C was decided as 1: 4. On A’s retirement, the goodwill of the firm was valued at 1,80,000. Showing your calculations clearly, pass the necessary Journal entry for the treatment of goodwill on A’s retirement.

The solution of Question 22 Chapter 6 of +2-A: –

DateParticulars
L.F.DebitCredit
 C’s Capital A/cDr 96,000 
 To A’s Capital A/c   72,000
 To B’s Capital A/c   24,000
 (Being Adjustment of A′s and B′s share of goodwill)   
      

Working Note: –

i. Calculation of B’s share of goodwill

A :B :C = 6:5:4(Old ratio)
B :C=1:4 (New ratio)

ii Gaining Ratio

Advertisement-X

 

B’s Gain =15
515
     
 =35
 15
     
 =2  
 15  

 

C’s Gain=44
515
     
 =124
 15
     
 =8  
 15  

 

A:C = 2: 8

Calculation of Retiring Partner’s Share of Goodwill

A’s share of goodwill=1,80,000X6
15
     
 =Rs 72,000  

 

B’s share of goodwill=1,80,000X2
15
     
 =Rs 24,000  

A’s and B’s share of goodwill be brought by C only
Therefore, C’s Capital A/c will be debited with 72,000+24,000 = Rs 96,000

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

Advertisement

Advertisement

error: Content is protected !!