Suresh, Ramesh and Tushar were partners of a firm sharing profits in the ratio of 6:5:4. Ramesh retired and his capital after making adjustments on account of reserves, revaluation of assets and reassessment of liabilities stood at ₹ 2,50,400. Suresh and Tushar agreed to pay him ₹ 2,90,000 in full settlement of his claim. Pass necessary journal entry for the treatment of goodwill. Show workings clearly.

CBSE Sample Question Paper, Class 12 Accountancy Term 2 Question - Suresh, Ramesh and Tushar were partners of a firm sharing profits in the ratio of 6:5:4. Ramesh retired and his capital after making adjustments on account of reserves, revaluation of assets and reassessment of liabilities stood at ₹ 2,50,400. Suresh and Tushar agreed to pay him ₹ 2,90,000 in full settlement of his claim. Pass necessary journal entry for the treatment of goodwill. Show workings clearly.

By
Komal Kohli
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Suresh, Ramesh and Tushar were partners of a firm sharing profits in
the ratio of 6:5:4. Ramesh retired and his capital after making
adjustments on account of reserves, revaluation of assets and
reassessment of liabilities stood at ₹ 2,50,400. Suresh and Tushar
agreed to pay him ₹ 2,90,000 in full settlement of his claim.
Pass necessary journal entry for the treatment of goodwill. Show
workings clearly.

Answer.

Working Note:
Ramesh’s share of Goodwill= ₹2,90,000 – ₹2,50,400 = ₹39,600

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