Question 26 Chapter 3 of Class 12 Part – 1
Table of Contents
26. A, B and C are partners sharing profits in the ratio of 5:4:1. It is now agreed that they will share future profits in the ratio of 3:3:4 with effect from 31st March, 2018. Goodwill is valued at Rs. 1,00,000. You are required to pass a single journal entry for the treatment of Goodwill.
The solution of Question 26 Chapter 3 of Class 12 Part – 1: –
Journal Entry
| Date |
Particulars |
|
L . F | Dr. ₹ | Cr. ₹ |
| 2018 | C’s Capital Account | Dr. | 30,000 | ||
| March 31 | To A’s Capital Account | 20,000 | |||
| To B’s Capital Account | 10,000 | ||||
| ( Being proportionate share of Goodwill adjusted among partners) |
Working Notes:
| Particulars |
A |
B | C |
| Partners’ Old Ratio | 5/10 | 4/10 | 1/10 |
| Partners’ New Ratio | 3/10 | 3/10 | 4/10 |
| Difference | 2/10 | 1/10 | (-3)/10 |
| Net Effect | Sacrifice | Sacrifice | Gain |
Thus Proportionate Share of Goodwill to be adjusted
| A = 1,00,000 | X | 2 |
| 10 |
= 20,000
| B = 1,00,000 | X | 1 |
| 10 |
= 10,000
| Z = 1,00,000 | X | 3 |
| 10 |
= 30,000
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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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