CBSE 2024, Set 1

Question

Aamir, Bashir and Chirag were partners in a firm sharing profits and losses in the ratio of 3:3:2. Chirag retired. Aamir and Bashir decided to share profits and losses in future in the ratio of 1:2. On the day of Chirag's retirement, goodwill of the firm was valued at ₹5,40,000. Calculate gaining ratio and pass necessary journal entry to record the treatment of goodwill (without opening goodwill account) on Chirag's retirement.

Edvaya · Accepted Answer

The correct answer is Subjective. **1. Calculation of Gaining Ratio:** Old Ratio (Aamir : Bashir : Chirag) = 3:3:2 New Ratio (Aamir : Bashir) = 1:2 Gain = New Share - Old Share Aamir's Gain = $1/3 - 3/8 = (8 - 9)/24 = -1/24$ (Sacrifice) Bashir's Gain = $2/3 - 3/8 = (16 - 9)/24 = 7/24$ (Gain) **2. Calculation of Goodwill Share:** Total Goodwill = ₹5,40,000 Chirag's Share = $5,40,000 	imes 2/8 = ₹1,35,000$ (Credited) Aamir's Share of Sacrifice = $5,40,000 	imes 1/24 = ₹22,500$ (Credited) Bashir's Share of Gain = $5,40,000 	imes 7/24 = ₹1,57,500$ (Debited) **Journal Entry:** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Bashir's Capital A/c Dr. | | 1,57,500 | | | | To Aamir's Capital A/c | | | 22,500 | | | To Chirag's Capital A/c | | | 1,35,000 | *(Being goodwill treated on Chirag's retirement)*

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Accountancy > Accounting For Partnership Firms > Retirement And Death Of A Partner

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