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प्रश्न
Neetu, Meetu and Teetu were partners in a firm. On 1st January, 2018, Meetu retired. On Meetu's retirement the goodwill of the firm was valued at Rs 4,20,000.
Pass necessary journal entry for the treatment of goodwill on Meetu's retirement.
उत्तर
As the profit sharing ratio is not given, it is assumed to be equal, thus, Meetu’s Sharein profits is 1/3.
Goodwill of the firm = Rs. 4,20,000
Meetu’s share of goodwill `=4,20,000xx1/3=1,40,000`
| Date | Particulars | L.F. |
Debit Amount Rs |
Credit Amount Rs |
| Jan 1,2018 | Neetu’s Capital A/c Dr | 70,000 | ||
|
Teetu’s Capital A/c Dr |
70,000 | |||
| To Meetu’s Capital A/c | 1,40,000 | |||
| (Being goodwill adjusted in the ratio 1:1) |
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संबंधित प्रश्न
Why are heirs of a retiring/deceased partner entitled to a share of goodwill of the firm?
Write the word/term or phrase which can substitute the following statement.
Account which is debited when new partner brings cash for his share of goodwill.
Write the term / word / phrase which can substitute the following statement :
The proportion in which the continuing partners benefit due to retirement of partner.
Select the most appropriate answer from the alternatives given below :
When goodwill is raised at its full value and it is written off __________ account is to be credited.
Select the most appropriate answer from the alternatives given below :
If the goodwill is raised to the extent of retiring partners share ___________ account is to be debited.
State whether the following statements is true or false :
Retiring partner is entitled to his share of goodwill.
State whether the following statements is true or false :
If goodwill is written off retiring partner’s capital account is debited.
Complete the following sentence.
"If goodwill already appears in the books, it will be written off by debiting all partner's capital account in their ______ ratio"?
On retirement/death of a partner, the retiring/deceased partner's capital account will be credited with ______
Gobind, Hari and Pratap are partners. On the retirement of Gobind, the goodwill already appears on the Balance Sheet at Rs. 24,000. The goodwill will be written off ______
Which Accounting standard states that Goodwill, in general, is recorded in the books only when some consideration in money or money's worth has been paid for it?
According to AS-26 which goodwill is recorded in the books?
What journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner?
Retiring partner's share of goodwill is debited to remaining partners in their ______.
How Goodwill is recorded on the retirement of a partner?
Madhu, Manav and Mukul were partners in a firm sharing profits in the ratio of 3 : 2: 1. On 31st March, 2021 Mukul retired from the firm. On Mukul's retirement, goodwill of the firm was valued at ₹ 3,00,000. Pass necessary journal entry for the treatment of goodwill without opening Goodwill Account on Mukul's retirement.
Puneet, Purav and Parth were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. The firm closes its books on 31st March every year. As per the terms of partnership deed, on the death of any partner, the Goodwill of the firm will be calculated on the basis of 3 times the average profits of last 4 years. Puneet died on 1st July, 2021. The profits for last four years were:
| Year | Profit (₹) |
| 2017 - 18 | 90,000 |
| 2018 - 19 | 1,00,000 |
| 2019 - 20 | 1,30,000 |
| 2020 - 21 | 80,000 |
Puneet's share of profit up to the date of death was to be calculated on the basis of previous year's profit.
- Calculate goodwill of the firm and Puneet's share of goodwill.
- Calculate Puneet's share in the profits of the firm till the date of his death.
- Pass necessary journal entries for the treatment of goodwill without opening goodwill account and for Puneet's share of profit at the time of his death.
David, Dolly and Divya are partners in a firm sharing profits and losses in the ratio 3 : 2 : 1. Divya retired from the firm and David and Dolly decided to share future profits & losses in the ratio 3 : 2. At the time of Divya's retirement, the goodwill of the firm was valued at ₹ 90,000.
Pass the necessary journal entry for treatment of goodwill without opening goodwill account on Divya's retirement.
Vibha, Sudha and Ashish were partners in a firm sharing profits in the ratio 2:3:1. Sudha retired and the balance in her capital account after making necessary adjustments on account of reserves, revaluation of assets and re-assessment of liabilities was ₹ 85,000. Vibha and Ashish agreed to pay Sudha ₹ 1,15,000 in full settlement of her claim. Record the necessary journal entry for goodwill on Sudha's retirement.
Kamal, Rahul and Neeraj were partners in a firm sharing profits and losses in the ratio of 5: 3: 2. On 31st March, 2002, their Balance Sheet was as under:
| Balance Sheet of Kamal, Rahul and Neeraj on 31st March, 2022 | ||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) |
| Capitals: | Land and Building | 1,70,000 | ||
| Kamal | 1,20,000 | 3,60,000 | Plant and Machinery | 2,60,000 |
| Rahul | 1,20,000 | Stock | 1,00,000 | |
| Neeraj | 1,20,000 | Debtors | 80,000 | |
| General Reserve | 1,20,000 | Cash | 50,000 | |
| Sundry Creditors | 1,80,000 | |||
| 6,60,000 | 6,60,000 | |||
On the above date, Rahul retired and following terms are agreed upon:
- Goodwill of the firm was valued at ₹ 3,50,000.
- An item of ₹ 10,000 included in sundry creditors is not likely to be claimed and hence written off. Stock was valued at ₹ 90,000.
- Capital of the new firm was fixed a ₹ 2,10,000 and the same will be adjusted in the profit sharing ratio of the remaining partners. For this purpose the required cash will be brought in or paid off as the case may be.
- Amount payable to Rahul will be transferred to his loan account.
Prepare Revaluation Account and Partners' Capital Accounts on Rahul's retirement.
