12 :- Sunil, Shahid and David are partners sharing profits and losses in the ratio of 4:3:2. Shahid retires and the goodwill is valued at Rs 72,000. Calculate Shahid’s share of goodwill and pass the journal entry for goodwill. Sunil and David decided to share profits and losses in the ratio of 5:3.
Solution :-
WORKING NOTES :-
(a) Calculation of their gaining/sacrificing share
New ratio – old ratio
Sunil = 5/8 – 4/9 = 45 – 32/72 = 13/72
David = 3/8 – 2/9 = 27 – 16/72 = 11/72
Thus their gaining ratio is 13:11
(b) Calculation of their share of goodwill
Shahid = 72,000 x 3/9 = Rs 24,000 (credit)
Sunil = 72,000 x 13/72 = Rs 13,000 (debit)
David = 72,000 x 11/72 = Rs 11,000 (debit)