Solutions to CBSE Sample Paper - Accounts Class 12
CBSE Class 12 Sample Paper for 2022 Boards [Term 2] - Accounts
Question 3 - CBSE Class 12 Sample Paper for 2022 Boards [Term 2] - Accounts - Solutions to CBSE Sample Paper - Accounts Class 12
Last updated at Jan. 23, 2022 by Teachoo
Suresh, Ramesh and Tushar were partners of a firm sharing profits in the ratio of 6:5:4. Ramesh retired and his capital after making adjustments on account of reserves, revaluation of assets and reassessment of liabilities stood at ₹ 2,50,400. Suresh and Tushar agreed to pay him ₹ 2,90,000 in full settlement of his claim. Pass necessary journal entry for the treatment of goodwill. Show workings clearly.
Answer
Calculation of hidden Goodwill
Total Amount agreed to be paid to Suresh
= 290000
Ramesh's Adjusted Capital
= 250400
Ramesh's share of Goodwill (Hidden Goodwill)
= 39600
Goodwill will be shared in gaining ratio which is 3:2
Date
Particulars
L.F
Dr (Amount)
Cr (Amount)
Suresh's Capital A/c Dr
23760
(39600*3/5)
Tushar's Capital A/c Dr
15840
(39600*2/5)
To Ramesh's Capital A/c
39600
(Ramesh's share of Goodwill adjusted in Gaining Ratio)
Working Notes :-
Calculation of Gaining Ratio :-
Gaining Ratio = New profit Share - Old profit Share
Suresh, Ramesh and Tushar were partners of a firm sharing profits in the ratio of 6:5:4. Ramesh retired and his capital after making adjustments on account of reserves, revaluation of assets and reassessment of liabilities stood at ₹ 2,50,400. Suresh and Tushar agreed to pay him ₹ 2,90,000 in full settlement of his claim. Pass necessary journal entry for the treatment of goodwill. Show workings clearly.
Answer
Calculation of hidden Goodwill
Total Amount agreed to be paid to Suresh = 290000
Ramesh's Adjusted Capital = 250400
Ramesh's share of Goodwill(Hidden Goodwill) = 39600
Goodwill will be shared in gaining ratio which is 3:2
Date Particulars L.F Dr (Amount) Cr (Amount)
Suresh's Capital A/c Dr
23760
(39600*3/5)
Tushar's Capital A/c Dr
15840
(39600*2/5)
To Ramesh's Capital A/c
39600
(Ramesh's share of Goodwill
adjusted in Gaining Ratio)
Working Notes :-
Calculation of Gaining Ratio :-
Gaining Ratio = New profit Share - Old profit Share
Old Ratio = 6 : 5 : 4
New Ratio = 6 : 4
Suresh's Gain = 3/5 - 6/15 = 3/15
Tushar's Gain = 2/5 - 4/15 = 2/15
Made by
Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.