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-Solution

By admin -

Q.2. 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.

SOLUTION

Books of Sangeeta, Saroj and Shanti

Journal

DateParticularsL.F.
Amount
(Rs.)
Amount
(Rs.)
Sangeeta’s capital A/cDr.12,000
Saroj’s capital A/cDr.18,000
Shanti ‘s capital A/cDr.30,000
     To Goodwill A/c60,000
(Goodwill written off)
Saroj’s capital A/cDr.18,000
    To Sangeeta’s capital A/c18,000
(Sangeeta’s share of goodwill adjusted to saroj’s capital A/c in her gaining ratio)

Working Notes:

1. Sangeeta’s share of goodwill.
Total goodwill of the firm  x Retiring Partner’s share

= 90,000 x 2/10

= Rs. 18,000.

2. Gaining Ratio = New Ratio – Old Ratio
Saroj’s Gaining Share

= 1/2-3/10

=4/20

Shanti’s Gaining Share

= 1/2-5/10

=0/20.

Gaining ratio between Saroj and Shanti = (their is only Saroj can gain)

Comments

Post a Comment

Popular posts from this blog

Himanshu Withdrews Rs 2,500 at the End Month of Each Month - Bzziii.com

By admin -
Himanshu withdrews Rs 2,500 at the end Month of each month. The Partnership deed provides for charging the interest on drawings @ 12% p.a. Calculate interest on Himanshu’s drawings for the year ending 31st December, 2017 SOLUTION Calculations for Himanshu's Total Drawing  = Rs 2,500 × 12  = Rs 30,000 Interest on Drawing = Total Drawings `\times` `"Rate"/"100"` `\times` `frac{11}{2\times12}` = Rs. 30,000 `\times` `"Rate"/"100"` `\times` `frac{11}{2\times12}` = RS. 1,650 Chapter-2 Partnership Basic: Accounts 18 19 20 21 22
Read more

Chapter 2 - Accounting for Partnership Firms-Fundamentals - Solutions for Class 12 Accountancy

By admin -
NUMERICAL QUESTION 1.Triphati and Chauhan are partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were Rs 60,000 and Rs 40,000 as on January 01, 2015. During the year they earned a profit of Rs 30,000. According to the partnership deed both the partners are entitled to Rs 1,000 per month as Salary and 5% interest on their capital. They are also to be charged an interest of 5% on their drawings, irrespective of the period, which is Rs 12,000 for Tripathi, Rs 8,000 for Chauhan. Prepare Partner’s Accounts when, capitals are fixed. SOLUTION 2. Anubha and Kajal are partners of a firm sharing profits and losses in the ratio of 2:1. Their capital, were Rs 90,000 and Rs 60,000. The profit during the year were Rs 45,000. According to partnership deed, both partners are allowed salary, Rs 700 per month to Anubha and Rs 500 per month to Kajal. Interest allowed on capital @ 5% p.a. The drawings at the end of the period were Rs 8,500 for Anubha and Rs 6,500 for Kajal. ...
Read more