Question

Sangeeta, Saroj and Shan are partners sharing profits in the rao of 2 : 3 : 5.
Goodwill is appearing in the books at a value of Rs. 60,000. Sangeeta reres
and goodwill is valued at Rs. 90,000. Saroj and Shan decided to share future
profits equally. Record necessary journal entries.

Answer 1

Answer:

Step-1 : Find out Gaining ratio of remaining partner and sacrificing ratio of sacrificing partner (if any)

Step-2 : Find out share of retiring partner or sacrificing partner in goodwill

Step-3 : Amount calculated under step 2 will be compensated by gaining partner in gaining ratio.

entry will be :

Note : Goodwill appearing in the books are distributed between all partner including retiring partner in their old profit sharing ratio

Gaining Partner's Capital A/C Dr

To Sacrificing Partner's Capital A/C