# Question 26 Chapter 3 of Class 12 Part – 1 VK Publication

Question 26 Chapter 3 of Class 12 Part - 1 VK Publication

Question 26 Chapter 3 of Class 12 Part – 1

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 Advertisement-X Advertisement-Y 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

Comment if you have any questions.