[CBSE] Retirement of a Partner solutions edition 2022-23 of TS Grewal’s Book

20

Old Ratio of Shivam, Kapil and Deepak is 3:1:2

Kapil is Retired = 1/6

So, New Ratio of Shivam & Deepak = 3:2

Gaining Ratio of Shivam & Deepak is 3:2

Calculation of Hidden Goodwill:

Hidden Goodwill = Amount payable to kapil – Amount of Capital account, adjustment of reserve and profit on revaluation

= 4,20,000 ₹ – 3,50,000 ₹

= 70,000 ₹

Shivam’s Contribute: 70,000 x 3/5 = ₹ 42,000

Deepak’s Contribute: 70,000 x 2/5 = ₹ 28,000

1   Kapil's Capital A/c                Dr.     420,000
         To Bank A/c                                   420,000
   
(Being Kapil's Claim Settled)
2   Shivam's Capital A/c              Dr.     42,000
    Deepak's Capital A/c              Dr.     28,000
       To Kapil's Capital A/c                           70,000
   
(Being Goodwill Adj. from partner's
    Capital A/c)