Question 6 Chapter 4 of Class 12 Part – 1 Usha Publication
6. (Different cases of treatment of Goodwill) X, Y and Z who are presently sharing profits and losses in the ratio of 5:3:2 decide to share future profits equally with effect from 1st April 2016. The goodwill of the firm has been valued at Rs.1,08,000. Show the necessary accounting treatment under each of the following alternative cases:
- When no goodwill appears in the books.
- When goodwill appears in the books at Rs.1,08,000.
- When goodwill appears in the books at Rs. 18,000.
- When goodwill appears in the books at Rs.1,26,000.
The solution of Question 6 Chapter 4 of Class 12 Part – 1 Usha Publication: –
| Old Ratio of X, Y, & Z | = | 5 : 3: 2 |
| New Ratio of X, Y, & Z | = | 1: 1: 1 |
Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old Ratio – New Ratio
| X’s Sacrificing/Gaining Share | = | 5 | – | 1 |
| 10 | 3 |
| = | 15 – 10 | |
| 30 |
| = | 5 | (Sacrifice) | |
| 30 |
| Y’s Sacrificing/Gaining Share | = | 3 | – | 1 |
| 10 | 3 |
| = | 9 – 10 | |
| 30 |
| = | -1 | (Gain) | |
| 30 |
| Z’s Sacrificing/Gaining Share | = | 2 | – | 1 |
| 10 | 3 |
| = | 6 – 10 | |
| 30 |
| = | -4 | (Gain) | |
| 30 |
(i) When no goodwill appears in the books.
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| April 1 | Y’s Capital A/c (1,08,000 X 1/30) | Dr. | 3,600 | ||
| Z’s Capital A/c (1,08,000 X 4/30) | Dr. | 14,400 | |||
| To X’s Capital A/c (1,08,000 X 5/30) | 18,000 | ||||
| (Being goodwill adjusted through Partner Capital A/c) | |||||
(ii) When goodwill appears in the books at Rs.1,08,000.
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| April 1 | X’s Capital A/c (1,08,000 x 5/10) | Dr. | 54,000 | ||
| Y’s Capital A/c (1,08,000 x 3/10) | Dr. | 32,400 | |||
| Z’s Capital A/c (1,08,000 x 2/10) | Dr. | 21,600 | |||
| To Goodwill A/c | 1,08,000 | ||||
| (Being goodwill already appeared in the book written off) | |||||
| Y’s Capital A/c (1,08,000 X 1/30) | Dr. | 3,600 | |||
| Z’s Capital A/c (1,08,000 X 4/30) | Dr. | 14,400 | |||
| To X’s Capital A/c (1,08,000 X 5/30) | 18,000 | ||||
| (Being goodwill adjusted through Partner Capital A/c) | |||||
(iii) When goodwill appears in the books at Rs.18,000.
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| April 1 | X’s Capital A/c (18,000 x 5/10) | Dr. | 9,000 | ||
| Y’s Capital A/c (18,000 x 3/10) | Dr. | 5,400 | |||
| Z’s Capital A/c (18,000 x 2/10) | Dr. | 21,600 | |||
| To Goodwill A/c | 18,000 | ||||
| (Being goodwill already appeared in the books are written off) | |||||
| Y’s Capital A/c (1,08,000 X 1/30) | Dr. | 3,600 | |||
| Z’s Capital A/c (1,08,000 X 4/30) | Dr. | 14,400 | |||
| To X’s Capital A/c (1,08,000 X 5/30) | 18,000 | ||||
| (Being goodwill adjusted through Partner Capital A/c) | |||||
(iv) When goodwill appears in the books at Rs.1,26,000.
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| April 1 | X’s Capital A/c (1,26,000 x 5/10) | Dr. | 63,000 | ||
| Y’s Capital A/c (1,26,000 x 3/10) | Dr. | 37,800 | |||
| Z’s Capital A/c (1,26,000 x 2/10) | Dr. | 25,200 | |||
| To Goodwill A/c | 1,26,000 | ||||
| (Being excess goodwill written off in the old profit sharing ratio) | |||||
| Y’s Capital A/c (1,08,000 X 1/30) | Dr. | 3,600 | |||
| Z’s Capital A/c (1,08,000 X 4/30) | Dr. | 14,400 | |||
| To X’s Capital A/c (1,08,000 X 5/30) | 18,000 | ||||
| (Being goodwill adjusted through Partner Capital A/c) | |||||
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End of Solution
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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)
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- 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)
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