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.
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 | ||
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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.) |
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+1..
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