Answer:
JOURNAL
Working Notes 1. Calculation of Gaining Ratio Gaining Ratio = New Share - Old Share \[A=\frac{1}{4}-\frac{1}{6}=\frac{3-2}{12}=\frac{1}{12}\] \[B=\frac{3}{4}-\frac{2}{6}=\frac{9-4}{12}=\frac{5}{12}\] \[\text{Gaining}\,\text{Ratio}\,=\frac{1}{12}:\frac{5}{12}\] Or 1 : 5 Date Particulars LF Amt (Dr) Amt (Cr) A's Capital A/c \[\left( 30,000\times 1/6 \right)\] Dr 5,000 B's Capital A/c \[\left( 30,000\times 5/6 \right)\] Dr 25,000 To C's Capital A/c 30,000 (Being C's share of goodwill adjusted to the capital accounts of A and B in their gaining ratio of 1 : 5)
2. Calculation of Hidden Goodwill Amt (Rs.) Amount agreed to be paid in full settlement 2,50,000 (-) C's capital after all adjustments (2,20,000) Hidden Goodwill 30,000
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