Q. A:B
3:2 C ADMITTED
NEW PROFIT SHARING RATIO =5:3:2
BEFORE ADMISSION GOODWILL IN B/S IS 24,000
C IS ADMITTED ON FOLLOWING CONDITIONS
AGREED VALUE OF GOODWILL RS.40,000 AND C BRING THE NECCESSARY PREMIUM FOR GOODWILL IN CASH , HALF OF WHICH IS RETAINED IN THE BUSSINESS , BOOK VALUE OF GOODWILL SHOULD REMAIN UNDISTRIBUTED .
WHAT ENTRIES SHOULD PE PASSED?
CA Raha Sk
(Professional)
(150 Points)
Replied 31 October 2011
c share of goodwill is 8000 computed as follows 40000/10*2 sacrifice ratio b\w a & b is equal
entries credit A& B Capital a\c with 4000 each and debit c capital a\c with 8000 HENCE c has bought d required premium in cash so credit c capital a\c and debit cash....both d partners have taken half of the cash so debit a&b capital a\c with 2000 each n credit cash ....
CA Raha Sk
(Professional)
(150 Points)
Replied 02 November 2011
ha 24000 hi books me dikhana hai hai....
CAclubindia
