Question

29. (Goodwill is partly paid privately and partly through books) A and B are partners in
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3:4 ratio. Value of firm's goodwill is 56,000. C is admitted for share. He brings capital
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* 20,000. He paid * 3,000 cash for goodwill privately and the balance of his share through
the books of firm. Pass entries.​

Answer 1

Answer:

cash a/c dr 20000

to C's capital a/c 20000

here no entry will be passed for the premium of goodwill as goodwill is paid privately by partner C