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

Question 27 Chapter 6 of +2-A

Table of Contents

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

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

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)

Chapter No. 8 – Company Accounts – Accounting for Share Capital
Chapter No. 9 – Company Accounts – Issue of Debentures
Chapter No. 10 – Redemption of Debentures

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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