A, B and C are partners sharing profits in the ratio of 4/9 : 3/9 : 2/9. B retires and his capital after making adjustments for reserves and gain (profit) on revaluation stands at ₹ 1,39,200. A and C agreed to pay him ₹ 1,50,000 in full settlement of his claim. Record necessary Journal entry for adjustment of goodwill if the new profit sharing ratio is decided at 5 : 3.
[Ans.: Hidden Goodwill (B’s Share): ₹ 10,800; Gaining Ratio – 13 : 11; Dr. A’s Capital A/c by ₹ 5,850 and C’s Capital A/c by ₹ 4,950; Cr. B’s Capital A/c by ₹ 10,800.]
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