Question 27 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Q-27 - CH-6 - T.S. Grewal +2 Book 2019 - Solution-min

Question 27 Chapter 6 of +2-A

27. Asha, Naveen, and Shalini were partners in firm sharing profits in the ratio of 5 : 3: 2. Goodwill appeared in their books at a value of 80,000 and General Reserve at 40,000. Naveen decided to retire from the firm. On the date of his retirement, the goodwill of the firm was valued at 1,20,000. The new profit-sharing ratio decided among Asha and Shalini is 2 : 3.
Record necessary journal entries on Naveen’s retirement.

The solution of Question 27 Chapter 6 of +2-A: –

Journal Entries

Date Particulars
L.F. Debit Credit
  Asha’s Capital A/c Dr.   40,000  
  Naveen’s Capital A/c Dr.   24,000  
  Shalini’s Capital A/c Dr.   16,000  
  To Goodwill A/c       80,000
  (Being existing goodwill transferred to Partners′ Capital Accounts in their old ratio i.e. 5:3:2)      
           
  General Reserve A/c Dr.   40,000  
  To Asha’s Capital A/c       20,000
  To Naveen’s Capital A/c       12,000
  To Shalini’s Capital A/c       8,000
  (Being balance of reserve transferred to Partners′ Capital Accounts in their old ratio i.e. 5:3:2)      
           
  Shalini’s Capital A/c Dr.    48,000  
  To Asha’s Capital A/c       12,000
  To Naveen’s Capital A/c       36,000
  (Being adjustment for goodwill made because Shalini is gaining the share but Asha and Naveen scarifying their share. )      
           

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

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2 Book 1 min - Question 27 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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