Question 25 Chapter 3 of Class 12 Part – 1
Table of Contents
25. X, Y and Z are partners sharing profits in the ratio of 5:3:2. It is now agreed they will share profits in the ratio of 5:4:3 with effect from 1st April, 2018. Goodwill is valued at Rs. 1,20,000. Pass a single journal entry for the treatment.
The solution of Question 25 Chapter 3 of Class 12 Part – 1: –
Journal Entry
| Date |
Particulars |
|
L . F | Dr. ₹ | Cr. ₹ |
| 2018 | Y’s Capital A/c | Dr. | 4,000 | ||
| April 1 | Z’s Capital A/c | Dr. | 6,000 | ||
| To Z’s Capital A/c | 10,000 | ||||
| ( Being proportionate share of Goodwill adjusted among partners ) |
Working Notes:
Old Ratio of X, Y and Z = 5:3:2
New Ratio of X, Y and Z = 5:4:3
Sacrificing Ratio = Old Share – New Share
| X | = | 5 | – | 5 |
| 10 | 12 |
| = | 60 – 50 | |
| 120 |
| = | 10 | (Sacrifice) | |
| 120 |
| Y | = | 3 | – | 4 |
| 10 | 12 |
| = | 36 – 40 | |
| 120 |
| = | -4 | (Gaining) | |
| 20 |
| Z | = | 2 | – | 3 |
| 10 | 12 |
| = | 24 – 30 | |
| 120 |
| = | -6 | (Gaining) | |
| 20 |
Thus Proportionate Share of Goodwill to be adjusted
| X = 1,20,000 | X | 10 |
| 120 |
= 10,000
| Y = 1,20,000 | X | 4 |
| 120 |
= 4,000
| Z = 1,20,000 | X | 6 |
| 120 |
= 6,000
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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