. 11. Pankaj and Naresh were partners in a firm sharing profits in the ratio of 3: 2. Their fixed
capitals were * 5,00,000 and 3,00,000 respectively. On 1st January, 2017, Saurabh was
admitted as a new partner for 1/5th share in the profits. Saurabh acquired his share of profit
from Pankaj. Saurabh brought * 3,00,000 as his capital which was to be kept fixed like the
capitals of Pankaj and Naresh.
Calculate the goodwill of the firm on Saurabh's admission and the new profit-sharing ratio
of Pankaj, Naresh and Saurabh. Also, pass necessary Journal entry for the treatment of Goodwill
Answers
Ramesh and Naresh are partners in a firm. Their capitals as on 1st April, 2017 were Rs.50,000 and Rs.1,50,000 respectively. They share profits equally. On 1st July, 2017, they decided that their capitals should be Rs.2,00,000 each. The necessary adjustment in the capitals were made by introducing or withdrawing capital. Interest on capital is allowed @ 8% p.a. Compute interest on capital for both the partners for the year ended 31st March, 2018.
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ANSWER
Calculation of interest on capital:
(i) Interest on Ramesh's Capital: Rs.
From 1st April, 2017 to 30th June, 2017 =Rs.1,50,000×
100
8
×
12
3
3,000
From 1st July, 2017 to 31st March, 2018 =Rs.2,00,000×
100
8
×
12
9
12,000
15,000
(ii) Interest on Naresh's Capital:
From 1st April, 2017 to 30th June, 2017 =Rs.1,50,000×
100
8
×
12
3
3,000
From 1st July, 2017 to 31st March, 2018 =Rs.2,00,000×
100
8
×
12
9
12,000
15,000