A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2. B retires and the goodwill is valued at Rs 1,08,000. A and C decided to share future profits and losses in the ratio of 5 : 3. Record necessary journal entry.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A’s capital A/c Dr Rs 19,500; C’s capital A/c Dr Rs 16,500; To B’s capital A/c Rs 36,000
B’s share of goodwill = ₹1,08,000 × 3/9 = ₹36,000
A’s gain = 5/8 − 4/9 = 45/72 − 32/72 = 13/72
C’s gain = 3/8 − 2/9 = 27/72 − 16/72 = 11/72
A pays = ₹1,08,000 × 13/72 = ₹19,500; C pays = ₹1,08,000 × 11/72 = ₹16,500
Entry: A’s Capital A/c Dr ₹19,500 and C’s Capital A/c Dr ₹16,500, To B’s Capital A/c ₹36,000 – the gaining partners compensate the retiring partner in their gaining ratio 13 : 11.
NCERT (2026-27 edition): |