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Accountancy · 2022 · 3 marks
Reconstitution of a Partnership Firm – Retirement/Death of a PartnerTreatment of Goodwill3 marksshort answer
CBSE 2022 · Region 4 · Set 2 · Q4
Mohan, Girdhari and Shyam were partners in a firm sharing profits and losses in the ratio of $\displaystyle 4$ : $\displaystyle 3$ : 2. On 31st March, $\displaystyle 2022$, Girdhari retired. After making all adjustments on account of reserves, revaluation of assets and reassessment of liabilities, the balance in Girdhari's Capital Account stood at ₹ $\displaystyle 5,00$,000. Mohan and Shyam agreed to pay Girdhari ₹ $\displaystyle 5,90,000$ in full settlement of his claim. Calculate the value of goodwill of the firm and pass the necessary journal entry for the treatment of goodwi $\displaystyle 11$ on Girdhari's retirement without raising goodwill account.
Marking-scheme solution
(i)
Amount agreed to be paid to Girdhari = $\displaystyle 5,90,000$
Less : Balance of his capital A/c = $\displaystyle 5,00,000$
Girdhari’s share of Goodwill ($\displaystyle 3$/$\displaystyle 9$) = $\displaystyle 90,000$
Goodwill of the firm = $\displaystyle 90,000$ x $\displaystyle 9$/$\displaystyle 3$ = ₹ $\displaystyle 2,70,000$
(ii)
Journal
L Debit Amount Credit Amount
Date Particulars
(₹) (₹)
F
$\displaystyle 2022$
Mohan’s Capital A/c Dr. $\displaystyle 60,000$
March
Shyam’s Capital A/c Dr. $\displaystyle 30,000$
$\displaystyle 31$
To Girdhari’s capital A/c $\displaystyle 90,000$
(Girdhari’s share of goodwill
adjusted to remaining partners’
capital accounts in gaining ratio)
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CBSE Class 12 Accountancy past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.