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Question 25 Chapter 3 of Class 12 Part – 1 VK Publication

Question 25 Chapter 3 of Class 12 Part - 1 VK Publication
Question 25 Chapter 3 of Class 12 Part - 1 VK Publication

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Question 25 Chapter 3 of Class 12 Part – 1

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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 . FDr. ₹Cr. ₹
2018Y’s Capital A/cDr. 4,000 
April 1Z’s Capital A/cDr. 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=55
1012
 =60 – 50
 120
 =10(Sacrifice)
 120

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Y=34
1012
 =36 – 40
 120
 =-4(Gaining)
 20

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Z=23
1012
 =24 – 30
 120
 =-6(Gaining)
 20

Thus Proportionate Share of Goodwill to be adjusted

X = 1,20,000X10
120

= 10,000

Y = 1,20,000X4
120

= 4,000

Z = 1,20,000X6
120

= 6,000

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Comment if you have any questions.

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

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

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