help meeee

569 views 2 replies

wat will b the entries 4 this xample:::::

old partnes A:B ,old ratio 2:1

goodwill already appeared in books (OLD GOODWILL) RS 10000.

new partner C is admitted for 1/4 share.

(1)  firm goodwill is valued at RS 20000 , nd no goodwill is to be appear in the books.

(2)  C will bring 60% of his share of goodwill in cash ,nd no goodwill is to be appear in the books.

Replies (2)

1)

A's Capital A/c                                                   Dr.       6666     

B's Capital A/c                                                   Dr.      3334

                 to Goodwill A/c                                                               10000

(old goodwill written off)

2)

Cash A/c                                                             Dr.     3000

                to Premium A/c                                                               3000

(goodwill brought in cash by C.)

3)

Premium A/c                                                       Dr.     3000

                 to A's Capital A/c                                                             2000

                 to B's Capital A/c                                                             1000

(premium distributed in old partners in sacrificing ratio.)

4)

C's Capital A/c                                                   Dr       2000.

               to A's Capital A/c                                                              1333

               to B's Capital A/c                                                              667

(remaining share of c' goodwill charged from c' capital a/c and distributed in old partners in sacrificing  ratio.)

Originally posted by : Vikrant

1)

A's Capital A/c                                                   Dr.       6666     

B's Capital A/c                                                   Dr.      3334

                 to Goodwill A/c                                                               10000

(old goodwill written off)

2)

Cash A/c                                                             Dr.     3000

                to Premium A/c                                                               3000

(goodwill brought in cash by C.)

3)

Premium A/c                                                       Dr.     3000

                 to A's Capital A/c                                                             2000

                 to B's Capital A/c                                                             1000

(premium distributed in old partners in sacrificing ratio.)

4)

C's Capital A/c                                                   Dr       2000.

               to A's Capital A/c                                                              1333

               to B's Capital A/c                                                              667

(remaining share of c' goodwill charged from c' capital a/c and distributed in old partners in sacrificing  ratio.)

+1..

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