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LoginJaya, Kirti, Ekta and Shewata are partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2: 1 .On Jaya's retirement, the goodwill of the firm is valued at Rs. 36,000. Kirti, Ekta and Shweta decided to share future profits equally. Record the necessary journal entry for the treatment of goodwill without opening 'Goodwill Account'.
Class 12 Accounts in Class 12 3 years ago
Working Notes
1. Jaya's SHARE of GOODWILL
`=Rs. 36,000xx(2)/(6)=Rs.12,000`
2.Calculation of Gaining Ratio
Gaining Share = New Share - Old Share
Kirti's GAIN`=(1)/(3)-(1)/(6)=(2-1)/(6)=(1)/(6)`
Ekta's Gain = `=(1)/(3)-(2)/(6)=(2-2)/(6)=(0)/(6)`(Neither Gain nor Sacrifice)
Shewata's Gain `=(1)/(3)-(1)/(6)=(2-1)/(6)=(1)/(6)`
Hence, Gaining ratio between Kirti and Shewata `(1)/(6):(1)/(6)=1:1`
Posted on 04 Dec 2021, this text provides information on Class 12 related to Accounts in Class 12. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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