24. X and Y are partners and share profits in the ratio of 3:2. They take Z as the new partner and it
is supposed that he would bring * 60,000 against capital and 20,000 against goodwill. New
profit- sharing ratio is 1:1:1. Z is able to bring only 60,000. How this will be treated in the
books of the firm ?
[Ans. J/E)
Note : Goodwill A/c to be adjusted through Capital Accounts 20,000.
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Answer:
Explanation:
. Stock a/c.... Dr. 60000
Debtors a/c... Dr. 80000
Land a/c.... Dr. 100000
Plant and machinery a/c... Dr. 40000
To Z's Capital a/c 130000
To Premium for goodwill a/c 150000
(Being capital and premium for goodwill brought in by C in the form of assets)
2. Premium for Goodwill a/c.... Dr. 150000
To X's Capital a/c 90000
To Y's Capital a/c 60000
(Being premium for goodwill distributed among partners in the ratio of 3:2)
Working Note:
1. Calculation of Z's share of goodwill:
Z's share of Goodwill= 600000 * 1/4= 150000
Z's share of capital = 280000 - 150000 = 130000
2. Distribution of premium for goodwill:
X's share= 3/5 * 150000= 90000
Y's share= 2/5 * 150000= 60000
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