Question 11:

P, Q and R are partners sharing profits in the ratio of 7:5:3. P retires and it is decided that profit-sharing ratio between Q and R will be same as existing between P and Q. Calculate New profit-sharing ratio and Gaining Ratio.

 

Answer:

 

Calculation of Gaining Ratio

P :Q :R=7:5:3(Old ratio)

Q :R=7:5 (New ratio, same as between P & Q)

 

Gaining Ratio = New Ratio - Old Ratio

Q's Gain=7/12−5/15=35−20/60=15/60

R's Gain=5/12−3/15=25−12/60=13/60

Q:R=15:13

 

Question 12:

Akhil, Tanish and Rajan are partners sharing profits in the ratio of 3:2:1. Rajan retires and gifted 1/2 of his share to Akhil and gives remaining share to Akhil and Tanish in the ratio of 1:2.

Calculate the New Profit-sharing Ratio and Gaining Ratio of Akhil and Tanish.

 

Answer:

Gift to Akhil = 1/6×1/2=1/12

 

Remaining of Akhil (1/12) distributed as follows in 1:2

Akhil = 1/12×1/3= 1/36

Tanish = 1/12×2/3 =2/36

 

Gaining ratio is 1:2 since it has been distributed in this ratio.

 

Calculation of new ratio

Akhil = 3/6 + (1/36+1/12)

= 3/6 +4/36

= 3/6 +1/9 = 9+2/18 =11/18

 

Tanish = 2/6 + 2/36 =12+2/36

= 14/36

= 7/18

 

 

Treatment of Goodwill

 

Question 13:

Sunil, Shahid and David are partners sharing profits and losses in the ratio of 4:3:2.Shahid retires and the goodwill is valued at ₹72,000. Calculate Shahid's share of goodwill and pass the Journal entry for Goodwill.

Sunil and David decided to share future profits and losses in the ratio of 5:3.

 

Answer:

 

Working notes;

WN1-

Calculation of gaining and sacrificing ratio

Sunil=4/9-5/8=32-45/72= -13/72

David= 2/9-3/8=16-27/72=-11/72

Gaining ratio of Sunil and David=13:11

 

WN2-

Firms goodwill =72,000

Share of retiring partner Shahid is 3/9

Share of shahid share =72,000×3/9=24,000

 

WN3-

Sunil and David will compensate 24,000 in their gaining ratio 13:11

Sunil will compensate=24,000×13/24=13,000

David will compensate=24,000×11/24=11,000

 

Question 14:

P, Q, R and S were partners in a firm sharing profits in the ratio of 5 : 3 : 1 : 1. On 1st January, 2026, S retired from the firm. On S's retirement, goodwill of the firm was valued at ₹ 4,20,000. New profit-sharing ratio among P, Q and R will be 4 : 3 : 3.
Showing your working notes clearly, pass necessary Journal entry for the treatment of goodwill in the books of the firm on S's retirement.

 

Answer:

Working Notes:

Gaining Ratio = New Ratio – Old Ratio 

P=4/10−5/10=−1/10sacrifice

Q=3/10−3/10=0

R=3/10−1/10=2/10

P's share=4,20,000×1/10=42,000

R's share=4,20,000×2/10=84,000

S's share=4,20,000×1/10=42,000

 

Question 15:

Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3 : 2 : 1. Manisha retired and goodwill of the firm is valued at ₹ 1,80,000. Aparna and Sonia decided to share future profits in the ratio of 3 : 2. Pass necessary Journal entries.

 

Answer:

Working Notes:

WN1: Calculation of Manisha’s Share in Goodwill

Manisha's share=Firm's Goodwill×Manisha's Profit ShareManisha's share=1,80,000×13=60,000

WN2: Calculation of Gaining Ratio
Gaining Ratio = New Ratio − Old Ratio

Aparna's gain=3/5−3/6=3/30

Sonia's gain=2/5−1/6=7/30

Gaining Ratio=3:7
Aparna's share=60,000×3/10=18,000

Sonia's share=60,000×7/10=42,000