CBSE Class 12 Sample Paper for 2022 Boards [Term 2] - Accounts

Accounts Class 12
Solutions to CBSE Sample Paper - Accounts Class 12
• CBSE Class 12 Sample Paper for 2022 Boards [Term 2] - Accounts

## 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

### Transcript

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

#### Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo