Question

Hanny, Pammy and Sunny are partners sharing profits in the ratio of 3 : 2 : 1. Goodwill is appearing in the books at a value of ₹ 60,000. Pammy retires and at the time of Pammy’s retirement, goodwill is valued at ₹ 84,000. Hanny and Sunny decided to share future profits in the ratio of 2 : 1. Record the necessary journal entries.

Answer 1

Answer:

qd8dqdacav

the ratio of 3 : 2 : 1. Goodwill is appearing in the books at a value of ₹ 60,000. Pammy retires and at the time of Pammy’s retirement, goodwill is valued at ₹ 84,000. Hanny and Sunny decided to share futurel acgs

Answer 2

Working Notes:

WN1: Calculation of Pammy’s Share in G

$Pammy's share = Firm 's Goodwill \times Pammy 's Profit Share \text { Pammy's share }=84,000 \times \frac{2}{6}=28,000$

(to be borne by gaining partners in gaining ratio)

WN2: Calculation of Gaining Ratio

Gaining Ratio = New Ratio − Old Ratio

$\text { Hanny ' } s \text { gain }=\frac{2}{3}-\frac{3}{6}=\frac{1}{6}$

$\text { Sunny 's gain }=\frac{1}{3}-\frac{1}{6}=\frac{1}{6}$

$Gaining Ratio =1: 1$