Question

1
[Hint. Give
34. (Goodwill is brought in Kind) X, Y and Z were doing business in 3 : 2 : 1 ratio. A was
admitted for-th share which was given to him by X and Y equally. A gave stock * 30,000;
6
Debtors * 10,000 : Computer 20,000 on account of his capital and goodwill. Total value of
goodwill was 48.000. Pass Journal entries.
[Ans. X and Y to be credited with * 4,000 each for goodwill].​

Answer 1

Answer:

A's Capital a/c.... Dr. 1200

B's Capital a/c.... Dr. 800

To Goodwill a/c 2000

(Being goodwill written off in the ratio of 3:2)

2. Cash a/c...... Dr. 10000

To C's Capital a/c 10000

(Being capital brought in by C)

3. C's Capital.... Dr. 3000

To A's Capital a/c 1800

To B's Capital a/c 1200

(Being C's share of goodwill charged to his capital account and distributed among the partners in the ratio of 3:2)