Question

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

Answer 1

Journal Entry
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Dr)}& \text{Amt.(Cr)}\\ & \text{Aparna's Capital A/c}\text{Dr}& & 18,000& \\ & \text{Sonia's Capital A/c}\text{Dr}& & 42,000& \\ & \text{To Manisha's Capital A/c}& & & 60,000\\ & \text{(Manisha's share of goodwill adjusted}& & & \\ & \text{to remaining partners capital account in}& & & \\ & \text{gaining ratio)}& & & \end{array}$

Working Note

Manisha's share in goodwill = $1,80,000\times \frac{2}{6}=Rs.60,000$

Gaining ratio = New ratio - Old ratio

Aparna = $\frac{3}{5}-\frac{3}{6}=\frac{18-15}{30}=\frac{3}{30}$

Sonia = $\frac{2}{5}-\frac{1}{6}=\frac{12-5}{30}=\frac{7}{30}$
or 3:7

Aparna's share of goodwill = $60,000\times \frac{3}{10}=Rs.18,000$

Sonia's share of goodwill = $60,000\times \frac{7}{10}=Rs.42,000$