17 :- A, B and C were partners sharing profits in the ratio of 3:2:1. The firm closes its books on 31st March every year. B died on 30th June, 2024. On his death, Goodwill of the firm was valued at Rs 6,00,000. B’s share in profit or losses till the date of death was to be calculated on the basis of previous year’s profit which was Rs 15,00,000 (loss)
Pass necessary journal entries for goodwill and for his share of loss.
Solution :-
WORKING NOTES :-
(i) Calculation of B’s share of goodwill
B’s share of goodwill = 6,00,000 x 2/6 = Rs 2,00,000
It will be brought by A and C in 3:1
A’s will give = 2,00,000 x 3/4 = Rs 1,50,000
B’s will give = 2,00,000 x 1/4 = Rs 50,000
(ii) Calculation of B’s share of loss
B’s share of loss = 15,00,000 x 2/6 x 3/12 = Rs 1,25,000