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Accountancy · 2026 · 3 marks
Reconstitution of a Partnership Firm – Retirement/Death of a PartnerTreatment of Goodwill3 marksshort answer
CBSE 2026 · Region 5 · Set 2 · Q18
Aastha, Diya and Mohit were partners in a firm sharing profits and losses in the ratio of 5: 3: 2. On 31st March, 2025 their Balance Sheet was as…
Aastha, Diya and Mohit were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. On 31st March, $\displaystyle 2025$ their Balance Sheet was as follows : Balance Sheet of Aastha, Diya and Mohit as at 31st March, $\displaystyle 2025$
Aastha retired from the firm on the above date on the following terms : (i) Goodwill of the firm was valued at $\displaystyle 2{,}00{,}000$ and the same was to be treated without opening goodwill account. (ii) Revaluation of assets and reassessment of liabilities resulted in a loss of $\displaystyle 60$,000. (iii) Amount payable to Aastha was transferred to her loan account. Pass necessary journal entries for goodwill, general reserve and revaluation of assets and reassessment of liabilities on Aastha's retirement.
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Patents | $\displaystyle 2{,}50{,}000$ | |
| Aastha $\displaystyle 2{,}20{,}000$ | Land and Building | $\displaystyle 4{,}76{,}000$ | |
| Diya $\displaystyle 3{,}10{,}000$ | Stock | $\displaystyle 1{,}34{,}000$ | |
| Mohit $\displaystyle 4{,}00{,}000$ | $\displaystyle 9{,}30{,}000$ | Debtors | $\displaystyle 95{,}000$ |
| General Reserve | $\displaystyle 50{,}000$ | Cash at bank | $\displaystyle 45{,}000$ |
| Creditors | $\displaystyle 20{,}000$ | ||
| $\displaystyle 10{,}00{,}000$ | $\displaystyle 10{,}00{,}000$ |
Marking-scheme solution
Books of Aastha, Diya and Mohit
Journal
Date Particulars L.F. Dr. Cr.
Amount(₹) Amount(₹)
$\displaystyle 2025$ Diya’s Capital A/c Dr. $\displaystyle 60{,}000$
March $\displaystyle 31$ Mohit’s Capital A/c Dr. $\displaystyle 40{,}000$
To Aastha’s Capital A/c $\displaystyle 1{,}00{,}000$
(Adjustment entry made for
goodwill)
General Reserve A/c Dr. $\displaystyle 50{,}000$
To Aastha’s Capital A/c $\displaystyle 25{,}000$
,, To Diya’s Capital A/c $\displaystyle 15{,}000$
To Mohit’s Capital A/c $\displaystyle 10{,}000$
(General reserve transferred to all
partners in old ratio)
,, Aastha’s Capital A/c Dr. $\displaystyle 30{,}000$
Diya’s Capital A/c Dr. $\displaystyle 18{,}000$
Mohit’s Capital A/c Dr. $\displaystyle 12{,}000$
To Revaluation A/c $\displaystyle 60{,}000$
(Loss on revaluation transferred to
all partners in old ratio)
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