Question

22. Gautam and Surendra were partners in a firm. Their profit sharing ratio is į and
On 1st Jan., 2017, the capital of both the partners were *20,000 and 15,000
respectively.
On this date they admitted Narendra as a partner with share on following
conditions :
(a) Narendra brought his share of goodwill in cash and the value of goodwill was
12 times of 3 years average profit. Three years profit was 3,000; * 4,000
and 5,000 respectively.
(b) Narendra brought * 5,000 as his capital.
Journalise, the above transactions and open capital account when :
(1) Old partners withdrew the amount of goodwill.
(2) The amount of goodwill was kept in the books of firm.​

Answer 1

Answer:

Goodwill=(3,000+4,000+5,000÷3)×12 = 48,000

Capital=5,000

1.Partner's Capital A/c Dr (Amount withdrawn)

To Cash A/c

2.Bank A/c Dr 53,000

To PFG A/c 48,000

To Capital A/c 5,000