Question

Q.
Aman, Bimal and Deepak are partners sharing profits in the ratio of 2:3:5. The goodwill
of the firm has been valued at 37,500. Aman retired. Bimal and Deepak decided to
share profits equally in future. Calculate gain/sacrifice of Bimal and Deepak on Aman's
retirement and also pass necessary journal entry for the treatment of goodwill. ​

Answer 1

Journal Entry for the treatment of Goodwill

Explanation:

Old ratio of Distributing profits among partners = 2 :3 : 5

New Ratio will be 1 : 1 since Aman retired from the firm and it therefore the Profit sharing ratio will become equal among the remaining partners.

Bimal's Gain = $\dfrac{1}{2} - \dfrac{3}{10}$  = $\dfrac{2}{10}$

Deepak's Gain = $\dfrac{1}{2} - \dfrac{5}{10}$  = 0

Goodwill of the firm has been provided as Rs.37,500.

Therefore,Aman's share will be $\dfrac{2}{10} \times 37,500$   = Rs.7,500

Journal:

               

                         Bimal Capital A/c     Dr. Rs.7,500

                               To Aman Capital A/c         Rs.7,500

                    (Being adjustment made to Goodwill on retirement)

Answer 2

$\huge\mathtt{\fbox{\red{Answer}}}$

Journal Entry for the treatment of Goodwill

Explanation:

Old ratio of Distributing profits among partners = 2 :3 : 5

New Ratio will be 1 : 1 since Aman retired from the firm and it therefore the Profit sharing ratio will become equal among the remaining partners.

Bimal's Gain = $\dfrac{1}{2} - \dfrac{3}{10}$  = $\dfrac{2}{10}$

Deepak's Gain = $\dfrac{1}{2} - \dfrac{5}{10}$  = 0

Goodwill of the firm has been provided as Rs.37,500.

Therefore,Aman's share will be $\dfrac{2}{10} \times 37,500$   = Rs.7,500

Journal:

               

                         Bimal Capital A/c     Dr. Rs.7,500

                               To Aman Capital A/c         Rs.7,500

                    (Being adjustment made to Goodwill on retirement)