444
Question
A, B & C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To gave effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.
B's Capital A/c Dr.
C's Capital A/c Dr.
To A's Capital A/c 2,000
1,000 3,000 Goodwill A/c Dr.
To A's Capital A/c
To B's Capital A/c
To C's Capital A/c 30,000
12,000
12,000
6,000A's Capital A/c Dr.
B's Capital A/c Dr.
C's Capital A/c Dr.
To Goodwill A/c 12,000
12,000
6,000 30,000 A's Capital A/c Dr.
To B's Capital A/c
To C's Capital A/c 3,000 2,000
1,000
A, B & C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To gave effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.
| B's Capital A/c Dr. C's Capital A/c Dr. To A's Capital A/c | 2,000 1,000 | 3,000 |
| Goodwill A/c Dr. To A's Capital A/c To B's Capital A/c To C's Capital A/c | 30,000 | 12,000 12,000 6,000 |
| A's Capital A/c Dr. B's Capital A/c Dr. C's Capital A/c Dr. To Goodwill A/c | 12,000 12,000 6,000 | 30,000 |
| A's Capital A/c Dr. To B's Capital A/c To C's Capital A/c | 3,000 | 2,000 1,000 |
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Solution
The correct option is A A
Sharing of profit ( Old Ratio) = 15000 : 10000 : 5000Sharing of profit ( New Ratio) = 12000 : 12000 : 6000Difference - A Cr. 3000 ; B Dr. 2000 ; C Dr. 1000
Sharing of profit ( Old Ratio) = 15000 : 10000 : 5000
Sharing of profit ( New Ratio) = 12000 : 12000 : 6000
Difference - A Cr. 3000 ; B Dr. 2000 ; C Dr. 1000
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