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Q. 24. \( A, B, C \) and \( D \) are partners sharing profits in the ratio of \( 4: 3: 2: 1 . \) On the retirement of \( B \), Goodwill was valued at \( ₹ 3,00,000 . A, C \) and \( D \) decide to continue the firm sharing profits equally. Pass the necessary journal entry. |
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Answer»
C's capital a/c Dr. 40,000 D's capital a/c Dr. 70,000 to A's capital a/c 20,000 to B's capital a/c. 90,000 Working notes; A,B,C and D share profit ratio= 4:3:2:1 New profit ratio =- 1:1:1 GAINING RATIO =NEW RATIO - OLD RATIO A = 1/3-4/10 =-2/30 C= 1/3-2/10= 4/30 D= 1/3-1/10=7/30 B= 3/10 Goodwill of the firm A= 2/30×3,00,000 = 20,000 B= 3/10×3,00,000 = 90,000 C= 4/30×3,00,000 = 40,000 D= 7/30×3,00,000 = 70,000 |
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