Question

Q.6. Amit and Kajal were partners in a firm sharing profits in the ratio of 3:2respectively. With effect from 1st March,2016, they agreed to share profits equally. For this purpose the goodwill of the firm was valued at ` 60,000. Pass the necessary Journal entry.

Answer 1

Sacrifice by Amit (3/5)-(1/2)= 1/10
Gain by Kajal (1/2) - (2/5) = 1/10

Kajal's Capital a/c Dr. 6000. {60000× 1/10}
To Amit's Vali a/c. 6000

Answer 2

Given,

Amit and Kajal were partners in a firm sharing profits in the ratio of 3:2 respectively. goodwill of the firm was valued at 60,000.

To Find,

Pass the necessary Journal entry.

Solution,

Sacrificing ratio = Old ratio - New Ratio

Sacrificing ratio of Amit = 3/5 - 1/2 = 1/10

Gaining ratio of Kajal = 2/5 - 1/2 = -1/10 (She is gaining since sacrificing ratio is negative)

Money to be paid by the gaining partner = 1/10 of ₹60,000 (Since it is the given goodwill)

= ₹6000

Thus, the journal entry will be.

Kajal's Capital A/C Dr           ₹6000

          To Amit's Capital A/c               ₹6000

(Being money paid by the gaining partner to sacrificing partner)

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