Question

Samta, Mamta and Geeta were partners in a firm sharing profits and losses in the ratio of 11 : 5 : 4. On 31st March, 2025 Samta died. On Samta's death, the goodwill of the firm was valued at ₹ 1,80,000. The necessary journal entry for the treatment of goodwill on Samta's death will be :

• A. A
• B. B
• C. C
• D. D

Hint:

On death of a partner:

• Deceased partner's share of goodwill = Total Goodwill × Deceased's Share
• Continuing partners compensate in their gaining ratio
• Journal Entry: Continuing Partners' Capital A/cs Dr. (in gaining ratio) \(\Rightarrow\) To Deceased Partner's Capital A/c

Remember: Deceased partner is credited, continuing partners are debited!

Answer 1

The Correct Option is D