SOLUTION
Meetu’s Share of Goodwill = Rs. 4,20,000 x 1 / 3 = Rs. 1,40,000
Meetu’s Share of Goodwill Rs. 1,40,000 would be adjusted between Neetu and Teetu in their gaining ratio of 1: 1.
Journal
| Date | Particulars | L.F | Amount (Dr.) | Amount (Cr.) |
| 2018 Jan 1 | Neetu’s Capital A/c (1,40,000 x 1 / 2) Dr. Teetu’s Capital A/c (1,40,000 x 1 / 2) Dr. To Meetu’s Capital A/c (Meetu’s share of Goodwill created in her capital account by debiting Neetu’s and Teetu’s capital account in their gaining ratio i.e.,1: 1) | 70,000 70,000 | 1,40,000 |
Note: Since the profit-sharing ratio is not given, it is assumed that they are sharing profits equally.