Question:
Vijay, Ravi and Raman were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st April, 2024, they admitted Kamal as a new partner for $\dfrac{1}{10}$\th share. New profit sharing ratio: 4 : 2 : 3 : 1. Goodwill of the firm = ₹ 6,00,000. Kamal brings his share of goodwill in cash.
(i) Calculate the sacrificing ratio
(ii) Pass journal entries for goodwill treatment in the books of the firm
Vijay, Ravi and Raman were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st April, 2024, they admitted Kamal as a new partner for $\dfrac{1}{10}$\th share. New profit sharing ratio: 4 : 2 : 3 : 1. Goodwill of the firm = ₹ 6,00,000. Kamal brings his share of goodwill in cash.
(i) Calculate the sacrificing ratio
(ii) Pass journal entries for goodwill treatment in the books of the firm
(ii) Pass journal entries for goodwill treatment in the books of the firm
Show Hint
Sacrifice = Old – New share. Goodwill is always shared by sacrificing partners only.
Updated On: Jul 18, 2025
Show Solution
Verified By Collegedunia
Solution and Explanation
(i) Sacrificing Ratio:
Old Ratio = 5 : 3 : 2
New Ratio = 4 : 2 : 3 : 1
Total old parts = 10 → Vijay = 5/10, Ravi = 3/10, Raman = 2/10
Total new parts = 10 → Vijay = 4/10, Ravi = 2/10, Raman = 3/10, Kamal = 1/10
Sacrifice = Old Share – New Share:
Vijay = 5/10 – 4/10 = 1/10
Ravi = 3/10 – 2/10 = 1/10
Raman = 2/10 – 3/10 = –1/10 (Gain)
Sacrificing Ratio (Only Vijay and Ravi): 1 : 1
(ii) Journal Entry for Goodwill:
Kamal’s share of goodwill = ₹ 6,00,000 × $ \dfrac{1}{10} $ = ₹ 60,000
This is to be shared between Vijay and Ravi in 1 : 1
Was this answer helpful?
0
0
Top CBSE CLASS XII Accountancy Questions
From the following Balance Sheet of Hira Ltd. as at 31st March, 2023, prepare Comparative Balance Sheet:
- On 1st May, 2023, Amrit Ltd. issued 10,000, 10% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 10%. Loss on issue of debentures will be:
- Gupta and Sharma are partners in a firm sharing profit in the ratio of 4:1. They admitted Preeti as a new partner for \( \frac{1}{4} \) share in the profits, which she acquired wholly from Gupta. The new profit sharing ratio of Gupta, Sharma, and Preeti will be:
- On the dissolution of a partnership firm, there were debtors of ₹34,000. Debtors of ₹1,000 became bad, and 60% was realized from the remaining debtors. Which account will be debited and by how much amount on the realization from debtors?
- If vendors are issued fully paid shares of ₹1,25,000 in purchase consideration of net assets of ₹1,50,000, the balance of ₹25,000 will be credited to:
View More Questions
Top CBSE CLASS XII Partnership Accounts Questions
- At the time of admission of a partner, the Balance Sheet of the firm showed a workmen compensation reserve of ₹80,000. The claim for workmen compensation was estimated at ₹1,00,000. The shortfall of ₹20,000 will be:
- Interest on capital will be provided to Aditi and Saurabh in which of the following ratio?
- Omkar and Shiva were partners in a firm. Omkar was entitled to a salary of \rupee 20,000 p.a. while Shiva was entitled to a salary of \rupee 50,000 p.a. Net profit for the year ended 31\textsuperscript{st March, 2023, after charging the salaries of Omkar and Shiva, was \rupee 5,60,000. The total amount credited to Omkar’s capital account will be:}
- Kanha, Resham, and Nisha were partners in a firm. Nisha had given a loan of \rupee 1,00,000 to the firm @ 10\% p.a. The accountant of the firm is emphasizing that interest on loan will be paid @ 6\% p.a. At what rate the interest on loan will be paid to Nisha?
- Aditya, Vishesh, and Nimesh were partners in a firm sharing profits and losses equally. Aditya died on 1\textsuperscript{st July, 2023. The remaining partners decided to continue the business of the firm and decided to share future profits in the ratio of 4:3. The gaining ratio of Vishesh and Nimesh will be:}
View More Questions
Top CBSE CLASS XII Questions
- 2, b, c are in A.P. and the range of determinant $\begin{vmatrix}1&1&1\\ 2&b&c\\ 4&b^{2}&c^{2}\end{vmatrix}$ is [2, 16]. Then find range of c is
- A boy of mass 50 kg is standing at one end of a, boat of length 9 m and mass 400 kg. He runs to the other, end. The distance through which the centre of mass of the boat boy system moves is
- A capillary tube of radius r is dipped inside a large vessel of water. The mass of water raised above water level is M. If the radius of capillary is doubled, the mass of water inside capillary will be
- A circular disc is rotating about its own axis. An external opposing torque 0.02 Nm is applied on the disc by which it comes rest in 5 seconds. The initial angular momentum of disc is
- A circular disc is rotating about its own axis at uniform angular velocity \(\omega.\) The disc is subjected to uniform angular retardation by which its angular velocity is decreased to \(\frac {\omega}{2}\) during 120 rotations. The number of rotations further made by it before coming to rest is
View More Questions