Page 250 - AAAXII

M.238 An Aid to Accountancy—CBSE XII

3 2 15 – 4 11
Mohan’s New Share = – = =
10 25 50 50
2 10
Sohan’s New Share = or
10 50
1 10
Hari’s share = or
5 50
Thus, New Profit-sharing Ratio of Ram, Mohan, Sohan and Hari = 19 : 11 : 10 : 10.
6. Z is not correct. Unless otherwise agreed, profit-sharing ratio among partners remains
unchanged. Thus, new profit-sharing ratio between X and Z will be 3 : 1.
7. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

X’s Capital A/c ...Dr. 42,000
Y’s Capital A/c ...Dr. 15,000
Z’s Capital A/c ...Dr. 18,000
To Goodwill A/c 75,000
(Being the existing Goodwill written off)
X’s Capital A/c ...Dr. 2,000
Z’s Capital A/c ...Dr. 8,000
To Y’s Capital A/c 10,000
(Being Y’s share of goodwill contributed by X and Z in their
gaining ratio, i.e., 1 : 4)
Profit and Loss Appropriation A/c ...Dr. 1,00,000
To X’s Capital A/c 60,000
To Z’s Capital A/c 40,000
(Being the profit for the year distributed between partners in new ratio)
Working Notes:
1. Calculation of Gaining Ratio and New Profit-sharing Ratio:
X Z
14 6
Old Share
25 25
11 1 4 1 4
Share Surrendered by Y ¥ = ¥ =
5 5 25 5 5 25
1 4
Thus, Gaining Ratio of X and Z = : =1: 4
25 25
14 1 15 6 4 10
Their New Shares + = + =
25 25 25 25 25 25
15 10
Hence, New Profit-sharing Ratio of X and Z = : 15:10 or 3: 2.
25 25
2. Calculation of Goodwill:
(i) Average Profit = (` 50,000 + ` 55,000 + ` 60,000)/3 = ` 55,000
(ii) Super Profit = ` 55,000 – ` 30,000 = ` 25,000
(iii) Goodwill = ` 25,000 × 2 = ` 50,000
(iv) Y’s Share of Goodwill = ` 50,000 × 1/5 = ` 10,000.