22 :- A, B, C and D are partners in a firm sharing profits, in the ratio of 2:1:2:1. On the retirement of C, Goodwill was valued Rs 180,000. A, B and D decide to share future profits equally. Pass the necessary journal entry for the treatment of goodwill.
Solution :-
WORKING NOTES
(a) Calculation of gaining/sacrificing share
New ratio – old ratio
A = 1/3 – 2/6 = 0
B = 1/3 – 1/6 = 1/6
D = 1/3 – 1/6 = 1/6
B and D gains in 1:1
(b) Calculation of their share of goodwill
C’s share of goodwill = 1,80,000 x 2/6 = Rs 60,000
B’s share of goodwill = 1,80,000 x 1/6 = Rs 30,000
D’s share of goodwill = 1,80,000 x 1/6 = Rs 30,000