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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 3 · Q6
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 goodwill 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.