Question

A,B,C were partner sharing profits and losses in the ratio of 1/2 : 1/3 : 1/6 respectively. C decided to retire and the partners decided to share the future profits and
losses in the ratio of 3: 2. It was decided that C's share of goodwill be adjusted in the
accounts of A and B. Fill in the missing figures in the following Journal entry :
Problem 1. (Fill in the Blanks)
A, B and C were partners sharing profits and losses in the ratio of
JOURNAL
1/2
2
36
Date
Particulars
L.F. Dr. ) Cr.)
Dr.
Dr.
A's Capital A/C
B's Capital Alc
To C's Capital A/c
(C's share of Goodwill debited to the accounts of
continuing partners in their gaining ratio)
24,000​

Answer 1

Answer:

Gaining ratio or sacrificing ration will be calculated as:

Gaining/Sacrificing Ratio = New Ratio - Old Ratio

Therefore:

For A = 1/3 - 3/6

= 2 - 3

6

= 1/6 Gaining Ratio

For B = 1/3 - 2/6

= 2 - 2

6

= No Change

For C = 1/3 - 1/6

= 2 - 1

6

= 1/6 Sacrificing Ratio

If no Goodwill account is not opened than an adjustment entry will be passed as under: Rs.18000 * 1/6 = Rs.3000

C's Capital Account Dr. 3000

To A's Capital Account 3000

If Goodwill Account is opened, first goodwill account is created by crediting partners capital account in their old profit sharing ratios:

Goodwill Account Dr. 18000

To A's Capital Account 9000

To B's Capital Account 6000

To C's Capital Account 3000

Than, Goodwill will be written off in the new profit sharing ratio:

A's Capital Account Dr.6000

B's Capital Account Dr. 6000

C's Capital Account Dr. 6000

To Goodwill Account 18000

Hope it's helpful dear

Answer 2

18000 is the correct answer.....................