Question

s,t and r partners sharing profit in the ratio 3:2:3 R retires and his capital after making of adjustments for Reserve and profit on revaulation stands at 240000 S and T decided to pay 3 lakh in full settlement of his claims pass necessary general entry for the settlement of goodwill if the new ratio profit -sharing 5:3

Answer 1

Oprs:3:2:3of s,tand r partner
R retired
So not of existing partner:5:3
Then gain ratio:
S partner 5/8_3/8=3/8
T partner 3/8__2/8=1/8
So good will companset
By s partner 40,000
And t partner 20,000

Answer 2

Given:

• S, T and R are partners in a firm, sharing profits and losses in the ratio 3:2:3.
• R retired.
• R's capital is Rs 2,40,000.
• S and T pay Rs 3,00,000 in full settlement of R's claims.
• The new profit-sharing ratio is 5:3.

Objective: To pas‎s the necessary journal entry for the settlement of goodwill.

Answer:

• S's old ratio = 3/8
• T's old ratio = 2/8
• R's old ratio = 3/8

• S's new ratio = 5/8
• T's new ratio = 3/8

Value of goodwill = Rs 3,00,000 - Rs 2,40,000 = Rs 60,000

Calculation of the gaining ratio:

Gaining ratio = New ratio - Old ratio

For S:

• Gaining ratio = 5/8 - 3/8 = 2/8

For T:

• Gaining ratio = 3/8 - 2/8 = 1/8

Therefore, the gaining ratio is 2:1.

The goodwill will be distributed among the remaining partners in their gaining ratio.

• S's share of goodwill = Rs 60,000 × 2/3 = Rs 40,000
• T's share of goodwill = Rs 60,000 × 1/3 = Rs 20,000

Journal entry:

S's capital A/c ... Dr - Rs 40,000

T's capital A/c ... Dr - Rs 20,000

• To R's capital A/c - Rs 60,000

(Goodwill adjusted.)