Retirement Of partner - illustration 3

Forgot to mention, kindly refer to the question given in the 2 Jpegs attached below the doubt.

Thread Starter

Siddharth Kulkarni

CA Final

★ 28K+

18-May-21 11:30

It's actually written off in 3:4:4 ratio 40000*3/11= 10909 40000*4/11= 14545 40000*4/11= 14546

Deepak Raja

CA Final

★ 1K+

18-May-21 12:34

The question says the profit sharing ratio is revised as on 1/4/2014.....i.e 3:4:4.

Deepak Raja

CA Final

★ 1K+

18-May-21 12:37

Yeah that's what I think too, but in the solution, they have written off goodwill(from balance sheet) in 5:4:3 ratio.

Thread Starter

Siddharth Kulkarni

CA Final

★ 28K+

18-May-21 15:32

Since the goodwill will appear in the books of the firm even after retirement of A, it should be adjusted between the partners as follows

Madhuri Veluri

CA Inter

★ 2K+

18-May-21 18:16

Yeah that treatment I got correct but ma'am, in the solution in the material, the existing goodwill in the balance sheet was written off in 5:4:3 instead of 3:4:4 , so isn't it wrong?

Thread Starter

Siddharth Kulkarni

CA Final

★ 28K+

27-May-21 13:22

May be some mistake in the material. The actual ratio will be 3:4:4.

Madhuri Veluri

CA Inter

★ 2K+

27-May-21 19:52