A's Capital A/c Dr. 5850
C's Capital A/c Dr. 4950
To B's Capital A/c 10800
(Being adjustment of B's share of goodwill made)
Working note:
(i) Calculation of B’s share of goodwill
A, B and C are sharing profit in ratio 4/9: 3/9: 2/9
B retires from the firm. Remaining partners agreed to pay him Rs. 1,50,000
B’s capital after making necessary adjustment Rs. 1,39,200
Therefore, hidden goodwill is Rs. 1,50,000 – Rs. 1,39,200 = Rs. 10,800
(ii) Gaining ratio
New profit sharing ratio between A and B is 5: 3
A’s gain = 5/8 – 4/9 = 13/72
C’s gain = 3/8 – 2/9 = 11/72
Gaining ratio = 13:11
Thus, B’s share of goodwill will be brought in by A and C in the gaining ratio 13:11 i.e.,
A is debited with 10,800 X 13/27 = Rs. 5,850
C is debited with 10,800 X 11/24 = Rs. 4,950