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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. |
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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 ratioGaining Partner's Capital A/C DR To Sacrificing Partner's Capital A/C |
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