Question 42 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 42 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 42 Chapter 6 – Unimax Class 12 Part 1: –

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

42. Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 2:2:1 on 28^th February, 2021 Mohan died and the net profit sharing ratio of Ram and Sohan was equal. On Mohan’s death the goodwill of the firm was valued at ₹ 150000.

Calculate the gaining ratio and pass the necessary Journal entry on Mohan’s death for the treatment of Goodwill without opening Goodwill account.

The solution of Question 42 Chapter 6 – Unimax Class 12 Part 1: –

Journal Entry

Date	Particulars		L.F.	Debit	Credit

	Ram’s capital a/c	Dr.		15,000
	Sohan’s capital a/c	Dr.		45,000
	To Mohan’s capital a/c				60,000
	(Being payment made on account of Goodwill).

WORKING NOTE:

1) Calculation of gaining ratio:
Ram ‘s gain =1/2-2/5= 5/10-4/10= 1/10
Sohan’s gain = 1/2 – 1/5 = 5/10 – 2/10 = 3/10
G.R. = 1:3
2) Mohsn’s share of Goodwill = 2/5×150000 = ₹60000.