How goodwill is recorded on the retirement or death of a partner? Post category:Accountancy Reading time:1 mins read SOLUTION Remaining Partner s Capital A/cs Dr. (In Gaining Ratio) To Retiring or Deceased Partner’s Capital A/cs(With his share of goodwill) Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostFor which share of goodwill a partner is entitled at the time of his retirement? Next PostName the account which is opened to credit the share of profit of the deceased partner, till the time of his death to his Capital Account. You Might Also Like Grand Hospitality Ltd., reported Net Profit after Tax of Rs. 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is: August 18, 2022 Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2: 2: 1. On 1st July, 2020 Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2019-20 Rs. 5,00,000 and that from 1st April to 30th June, 2020 were Rs. 1,40,000. Rate of profit during the past three years had been 10% on sales. Since Shreya’s legal representative was her only son, who is specially abled, it was decided that the profit for the purpose of settling Shreya’s account is to be calculated as 20% on sales. Calculate Shreya’s share of profits till the date of her death and pass necessary Journal entry for the same.(CBSE 2018 C, Modified) August 5, 2022 What is the ideal Quick Ratio? October 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Grand Hospitality Ltd., reported Net Profit after Tax of Rs. 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is: August 18, 2022
Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2: 2: 1. On 1st July, 2020 Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2019-20 Rs. 5,00,000 and that from 1st April to 30th June, 2020 were Rs. 1,40,000. Rate of profit during the past three years had been 10% on sales. Since Shreya’s legal representative was her only son, who is specially abled, it was decided that the profit for the purpose of settling Shreya’s account is to be calculated as 20% on sales. Calculate Shreya’s share of profits till the date of her death and pass necessary Journal entry for the same.(CBSE 2018 C, Modified) August 5, 2022