help meeee

rahul (student) (151 Points)

29 April 2010

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.

Reply
Follow
Share

2 Replies

Vikrant (Chartered Accountant) (601 Points)
Replied 29 April 2010

A's Capital A/c Dr. 6666

B's Capital A/c Dr. 3334

to Goodwill A/c 10000

(old goodwill written off)

Cash A/c Dr. 3000

to Premium A/c 3000

(goodwill brought in cash by C.)

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.)

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.)

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 29 April 2010

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.)