Question 52 Chapter 6 of Class 12 Part – 1 Usha Publication
52. (Share of Goodwill) P, R, and S are in partnership sharing profits 4/8, 3/8and 1/8 respectively. It is provided under the partnership deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profits credited to his account during the last four completed years (books of accounts are closed on 31st December).
R died on 1st January 2015 The firm’s profits for the last four years were as follows 2011 profits Rs. 1,20.000; 2012 profits Rs. 60,000, 2013 losses Rs. 20,000, 2014 profits Rs. 80,000.
- Determine the amount that should be credited to R in respect of his share of goodwill.
- Pass a journal entry without raising goodwill account for its adjustment assuming that profit sharing ratio between P and S in future will be 3:2 Show your workings clearly.
The solution of Question 52 Chapter 6 of Class 12 Part – 1 Usha Publication: –
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Calculation of amount to be credited to by way of goodwill
R’s share in goodwill being ½ of the net profits credited to his A/c during last 4 completed years.
| Year | Profit |
| 2011 | 1,20,000 |
| 2012 | 60,000 |
| 2013 | (20,000) |
| 2014 | 80,000 |
| 2,40,000 | |
| R’s share in profit | = | 3 | x | 2,40,000 |
| 8 | ||||
| = | Rs 90,000 |
| R’s share in Goodwill | = | 1 | x | 90,000 |
| 2 | ||||
| = | Rs 45,000 |
If R is to be paid his goodwill without raising a goodwill A/c, then the debits should be given to the capital A/c of the surviving partners in their gaining ratio :
| P’s gain | = | 3 | – | 4 |
| 5 | 8 | |||
| = | 4 | |||
| 40 |
| S’s gain | = | 2 | – | 1 |
| 5 | 8 | |||
| = | 11 | |||
| 40 |
| Journal |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| P’s capital A/c | Dr. | 12,000 | |||
| S’s capital A/c | Dr. | 33,000 | |||
| To R’s capital A/c | 45,000 | ||||
| (Being R’s share of goodwill debited to surviving partners) | |||||
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Check out Part 2 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication