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# Sangeeta, Saroj and Shanti are partners sharing profits in the ratio of 2:3:5. Goodwill is appearing in the books at a value of Rs 60,000. Sangeeta retires and goodwill is valued at Rs 90,000. Saroj and Shanti decided to share future profits equally. Record necessary Journal entries.

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Solution

## <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4;} @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; font-size:12.0pt; font-family:"Times New Roman","serif";} .MsoChpDefault {font-size:12.0pt;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.Section1 {page:Section1;} --> Books of Saroj and Shanti Journal Date Particulars L.F. Amount Rs Amount Rs Sangeeta’s Capital A/c Dr. 12,000 Saroj’s Capital A/c Dr. 18,000 Shanti’s Capital A/c Dr. 30,000 To Goodwill A/c 60,000 (Goodwill written off) Saroj’s Capital A/c Dr. 18,000 To Sangeeta’s Capital A/c 18,000 (Sangeeta’s share of goodwill adjusted to Saroj’s Capital Account in her gaining ratio) Working Notes: 1. Sangeeta’s share of goodwill. Total goodwill of the firm ´ Retiring Partner’s share 2. Gaining Ratio = New Ratio – Old Ratio Saroj’s Gaining Share Shanti’s Gaining Share

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