Question

0.57. Charu and Deepika were partners sharing profits in the ratio of 3 : 2. They
admited Esha, as a new partner and the new ratio is agreed at 4:3 : 2. On the date of
Esha's admission, the Balance Sheet of Charu and Deepika disclosed General Reserve
1,20,000; Dr. balance in Profit & Loss Account 40,000; Investments 32,00,000 and
Investment Fluctuation Reserve 60,000.
The following was agreed upon Eshas' admission:
(1) Esha will bring $3,00,000 as her Capital and her share of goodwill premium
in cash
(ii) Goodwill of the firm be valued 1,80,000.
(ii) The market value of investments was 2,30,000.
Pass the necessary journal entries.​

Answer 1

1. general reserve ac dr 120000

to c 72000

to d 48000

2. c ac dr.40000

d ac dr.24000

to p&l16000

3. revaultion. Dr 90000 to inv.

4. c ac dr.54000

d ac dr. 36000

to p&l loss 90000

3.bank ac dr. 300000

to esshas cap 260000

to goodwill 40000

4. goodwill ac dr. 40000

to c 24000

to d 16000