Question

0. 18 (A). P, Q and R are equal partners. Goodwill is appearing in their books
at 400000. R retires and on the day of R's retirement Goodwill is valued at
2,50,000. Pass the necessary journal entries.​

Answer 1

Answer:

gaining ratio 1:1

Explanation:

P's capital ac. dr. 133333

Q's. capital ac dr. 133333

R capital ac. Dr. 133333

to. gooodwill. 400000

(old Goodwill writeoff)

p. cap. ac dr. 46666

q. cap. ac. dr. 46666

to r. cap. ac. 833333

this answer will go in points if i will solve more ... entries are right

Answer 2

          Journal Entries in the books of the  firm

P's A/C DR  1,33,333

Q's A/C DR 1,33,333

R's A/C DR 1,33,334

             To Goodwill A/C 4,00,000

( Being goodwill written off in the books of account )

P's A/C DR   41,666

Q's A/C DR  41,667

              To R's A/C 83,333    

( Being R retires and goodwill given to him )

Note-

• Goodwill is written in the balance sheet and it will be written off as it is our asset and it is not shown in the books of account.
• On the day of retirement retiring partner is given his share of goodwill which is brought by the gaining partner.