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

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

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 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)

1 2 3 4 5 6