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?
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 ....
q ki last line ka matlab kya hai?
ha 24000 hi books me dikhana hai hai....
Synergy Keystone
Mumbai
CA
View Details
RBSM Corporate Advisors Private Limited
Pune
CA
View Details
My Legal Tax Consultants Pvt. Ltd.
Noida
CA Inter
View Details
PARV & Co.
New Delhi
CA Inter
View Details
CCI
Pro
CAclubindia
