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Partnership retirement illustration 11
Accountancy
In illustration 11 of unit3 retirement icai module i didn't understand the goodwill entry they did remaining total sum i am able to do goodwill first old 60000 i written off but again revalued 120000-60000=60000 i distributed through goodwill table in old psr and new psr but answer not coming .I didn't understand the goodwill entry given in textbook
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Best Answer
Hlo student,,, Old good will 60000 is totally written off and debited to respective partner's capital account in their old profit sharing ratio And company is assuming their good will should be 120000 Dont Calculate 120000-60000=60000 New good will of 120000 in that retiring partner share is 30000 ,,this amount of good will ,retiring partner is giving to old partners so, for that old partners giving their capital amount to Retiring partner So the entry is. Gaining partners capital account. Dr To Sacrificing part cap account (Beeing sacrifisng partner good will is distributed to Gaining partners) If You have still doubt reply this
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