Sangeeta, Saroj and Shanti are partners sharing profits in the ratio of 2:3:5. Goodwill is appearing in the books at a value of Rs 60,000. Sangeeta retires and goodwill is valued at Rs 90,000. Saroj and Shanti decided to share future profits equally. Record necessary Journal entries.
Answers
Answer:
Initially goodwill was valued to Rs 60,000.
So, share of Sangeeta = Rs (2/10)*60000
=Rs 12000
Share of Saroj= Rs (3/10)*60000
=Rs 18000
Share of Shanti= Rs (5/10)*60000
=Rs 30000
After retirement of Sangeeta, goodwill was valued to Rs 90,000.
Saroj and Shanti decided to divide the future profits equally,
So according to the given problem,
Goodwill share of Sangeeta= Rs 90000* (2/10)
=Rs 18000
As we know, Gaining ratio= New ratio- Old ratio
So, gaining ratio of Saroj=(1/2)-(3/10)
=2/10
Gaining ratio of Shanti is (1/2)-(5/10)=0
Journal
Particular Amount Amount
in Rs in Rs
Sangeeta Dr 12000
Saroj Dr 18000
Shanti Dr 30000
To goodwill. 60000
A/c.
Saroj's Dr
Capital A/c. 18000
To Sangeeta's
Capital A/c. 18000