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Question 33 Chapter 3 of Class 12 Part – 1 VK Publication

Question 33 Chapter 3 of Class 12 Part - 1 VK Publication
Question 33 Chapter 3 of Class 12 Part - 1 VK Publication

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Question 33 Chapter 3 of Class 12 Part – 1

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33. P and Q were partners in a firm sharing profits in the ratio of 3:1. With effect from 1st April,2017, they agreed to share profits in the ratio of 2:1. For this purpose, the Goodwill of the firm was valued at Rs. 50,000. General Reserves appear in the books at Rs. 40,000. Partner’s neither want to show goodwill in the books nor want to distribute the reserves. You are required to record the change by passing a single journal entry.

The solution of Question 33 Chapter 3 of Class 12 Part – 1: –

Journal Entry

Date

Particulars

 

L . FDr. ₹Cr. ₹
2017Q’s Capital A/cDr. 7,500 
April 1To P’s Capital A/c   7,500
 ( Being proportionate share of Goodwill and General Reserve adjusted between partners)    

Working Note:

ParticularsPQ
Partners’ Old Ratio2/41/4
Partners’ New Ratio2/31/3
Difference1/12(-1)/12
Net EffectSacrificeGain

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Amount to be Adjusted:

Goodwill =Rs. 50,000
General Reserve =Rs. 40,000
 Rs. 90,000

Amount of compensation= 90,000 x 1/12 = Rs. 7,500

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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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