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
Treatment of
Goodwill
Question 12:
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:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
Shahid’s capital a/c |
Dr. |
24,000 |
|||
|
|
To Sunil’s
capital a/c |
13,000 |
|||
|
|
To David’s
capital a/c |
11,000 |
|||
|
|
(Being Goodwill adjusted) |
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|
|
|
|
|
|
|
|
|
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Working notes;
WN1-
Calculation of gaining and sacrificing ratio
|
|
Sunil
|
Shahid
|
David
|
Old ratio
|
4
:
|
3
:
|
2
|
New ratio
|
5
|
:
|
3
|
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 13:
P, Q, R and S were partners in a firm sharing profits in
the ratio of 5 : 3 : 1 : 1. On 1st January, 2024, 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:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
2024 |
|
|
|
|
|
|
|
To P’s Capital A/c |
|
|
|
42,000 |
|
|
To S’s Capital A/c |
|
|
|
42,000 |
|
|
(Being Goodwill adjusted) |
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|
|
|
|
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|
|
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|
Working Notes:
Gaining Ratio = New Ratio – Old Ratio
P=4/10−5/10=−1/10
sacrifice
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 14:
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:
|
Journal |
|
|||||
|
Date |
Particulars |
L.F. |
(`) |
(`) |
||
|
|
Aparna’s Capitals A/c |
Dr. |
|
18,000 |
|
|
|
|
Sonia’s Capital A/c |
Dr. |
|
42,000 |
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To Manisha’s Capital A/c |
|
|
|
60,000 |
|
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|
(Being Manisha’s share of goodwill
adjusted to Aparna’s and Sonia’s Capital Account in their gaining ratio) |
|
|
|
||
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
Question 15:
A, B and C are partners sharing profits in
the ratio of 3 : 2 : 1. B retired and the new profit-sharing ratio
between A and C was 2 : 1. On B's retirement, the
goodwill of the firm was valued at ` 90,000. Pass necessary Journal entry for the treatment of
goodwill on B's retirement.
Answer:
|
Journal |
||||
|
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
A’s
Capital A/c |
Dr. |
|
15,000 |
|
|
C’s
Capital A/c |
Dr. |
|
15,000 |
|
|
To B’s Capital A/s |
|
|
30,000 |
|
|
(Being
Adjustment B’s share of goodwill made) |
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|
|
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Working Notes:
WN 1 Calculation
of Gaining Ratio
Old
Ratio (A, B and C) = 3 : 2 : 1
B
retires from the firm.
New
Ratio (A and C) = 2 : 1
Gaining
Ratio=New Ratio − Old Ratio
A‘s share=2/3 -3/6 =4-3/6=1/6
B‘s share= 1/3 -1/6 =2-1/6=1/6
∴Gaining Ratio = 1 : 1
WN 2 Adjustment
of Goodwill
Goodwill
of the firm = ` 90,000
B’s
share of goodwill =90,000×2/3=30,000
This
share of goodwill is to be debited to remaining Partners’ Capital Accounts in
their gaining ratio (i.e. 1 : 1).
A’s and
C’s capital will be debited =30,000×1/2=15000
Ts Grewal Solution 2024-2025
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Class 12 / Volume – I