Question

p ,q and r are partners in a firm goodwill has been valued at 36000 on R's retirement from the firm ,p and q agree to share profit in the ratio of 3:2 pass necessary journal entry for treatment of R's share of goodwill
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Answer 1

Answer:

see below

Explanation:

a) When Goodwill is adjusted through Partner's Capital Account :

Note : Gaining Ratio = New Ratio - Old Ratio

P Gains =  

3

5

 

-

1

3

 

=

9-5

15

 

=

4

15

 

Q Gains =  

2

5

 

-

1

3

 

=

6-5

15

 

=

1

15

 

As such, gaining ratio between P and Q = 4 : 1

ALTERNATE SOLUTION :

(b) When Goodwill is raised and written off :