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M.116 An Aid to Accountancy—CBSE XII
(a) JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
2018
April 1 Goodwill A/c ...Dr. 3,60,000
To A’s Capital A/c 1,80,000
To B’s Capital A/c 1,20,000
To C’s Capital A/c 60,000
(Being the goodwill raised and credited to Partners in old profit-sharing ratio)
A’s Capital A/c ...Dr. 1,20,000
B’s Capital A/c ...Dr. 1,80,000
C’s Capital A/c ...Dr. 60,000
To Goodwill A/c 3,60,000
(Being the goodwill written-off in new profit-sharing ratio)
(b) When Goodwill Account is not Opened:
Calculation of Sacrifice/(Gain) of Partners:
Sacrifice/(Gain) = Old share – New share
A = 3/6 – 2/6 = 1/6 (i.e., sacrifice)
B = 2/6 – 3/6 = (1/6) (i.e., gain)
C = 1/6 – 1/6 = 0
A is a sacrificing partner and B is a gaining partner.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2018
April 1 B’s Capital A/c ...Dr. 60,000
To A’s Capital A/c 60,000
(Being the adjustment for goodwill made on change in profit-sharing
ratio without opening Goodwill Account)
Note: In both the situations, result is same.
Or
Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Stock A/c 20,000 By Furniture A/c 60,000
To Gain (Profit) on Revaluation transferred to:
X’s Capital A/c 25,000
Y’s Capital A/c 15,000 40,000
60,000 60,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X (`) Y (`) Particulars X (`) Y (`)
To Advertisement Suspense A/c 5,000 3,000 By Balance b/d 3,00,000 2,00,000
To X’s Capital A/c (Goodwill) ... 80,000 By Revaluation A/c (Gain) 25,000 15,000
To Balance c/d 4,30,000 1,50,000 By Contingency Reserve A/c 17,500 10,500
By Workmen Compensation
Reserve A/c 12,500 7,500
By Y’s Capital A/c (WN 1 and 2) 80,000 ...
4,35,000 2,33,000 4,35,000 2,33,000