# 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

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

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 = 3 – 5 6 10
 = 15 – 15 30
 = 0 (Nil) 30

 B = 2 – 3 6 10
 = 10 – 9 30
 = 1 (Sacrifice) 20

 C = 1 – 2 6 10
 = 5 – 6 30
 = -1 (Gaining) 20

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

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –