Question

Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3 : 2 : 1. Manisha retires and goodwill of the firm is valued at ₹ 1,80,000. Aparna and Sonia decided to share future profits in the ratio of 3 : 2. Pass necessary journal entries.

Answer 1

Answer:

A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations

Answer 2

Explanation:

WN1: Calculation of Manisha’s Share in Goodwill

$Manisha's share = Firm 's Goodwill \times Manisha's Profit Share Manisha's share =1,80,000 \times \frac{1}{3}=60,000$

WN2: Calculation of Gaining Ratio

Gaining Ratio = New Ratio − Old Ratio

Aparna's gain $=\frac{3}{5}-\frac{3}{6}=\frac{3}{30}$

Sonia's gain $=\frac{2}{5}-\frac{1}{6}=\frac{7}{30}$.

Gaining ratio = 3:7

$\begin{array}{l}\text { Aparna's share }=60,000 \times \frac{3}{10}=18,000 \\\\\text { Sonia's share }=60,000 \times \frac{7}{10}=42,000\end{array}$