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Question 23 Chapter 3 of Class 12 Part – 1 VK Publication

Question 23 Chapter 3 of Class 12 Part - 1 VK Publication
Question 23 Chapter 3 of Class 12 Part - 1 VK Publication

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Question 23 Chapter 3 of Class 12 Part – 1

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23. A, B and C were partners in a firm sharing profits in 3:2:1 ratio. They decided to share future profits in 5:3:2 ratio. For this purpose, the goodwill of the firm was valued at Rs. 60,000. Pass an adjustment entry for the treatment of goodwill.

The solution of Question 23 Chapter 3 of Class 12 Part – 1: –

 

Journal Entry

Date

Particulars

 

L . FDr. ₹Cr. ₹
 C’s Capital AccountDr. 2,000 
 To B’s Capital Account   2,000
 (Being proportionate share of Goodwill adjusted between Partners,i.e., 60,000)    

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Working Notes:
Old Ratio of A,B and C = 3:2:1
New Ratio of A, B and C = 5:3:2
Sacrificing Ratio = Old Share – New Share

A=35
610
 =15 – 15
 30
 =0(Nil)
 30

 

B=23
610
 =10 – 9
 30
 =1(Sacrifice)
 20

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C=12
610
 =5 – 6
 30
 =-1(Gaining)
 20

Thus Proportionate Share of Goodwill to be adjusted = 60,000 x 1/30 = Rs. 2,000.

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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

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Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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