Accountancy, asked by rishideo512, 7 months ago

A and B are partners in a firm sharing profits in the ratio of 7:5. On April 1,2019 they admit C as a new partner for 1/6th share. The new ratio will be 13:7:4. C contributed the following assets towards his capital for his share of goodwill: Stock Rs.60,000;Debtors Rs.80,000; Land Rs.2,00,000; Plant and Machinery Rs.1,20,000. On the date of C's admission the goodwill of the firm was valued at Rs.7,50,000. Record the necessary Journal entries in the books of the firm.

Answers

Answered by kocheriujwala
1

Answer:

700000 lakh 50000 for new books

Answered by yashc26368
1

Answer:

1. A's Capital a/c.... Dr. 1800

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

To Goodwill a/c 3000

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

2. Cash a/c.. Dr. 40000

To C's Capital a/c 30000

To Premium for goodwill a/c 10000

(Being capital and premium for goodwill brought in by C)

3. Premium for Goodwill a/c... Dr. 10000

To A's Capital a/c 5000

To B's Capital a/c 5000

(Being premium for goodwill brought in by C distributed among the partners in the ratio of 1:1)

Working Note:

1. Calculation of sacrificing ratio:

A's sacrifice= 3/5- 5/10= 1/10

B's sacrifice= 2/5- 3/10= 1/10

Sacrificing ratio= 1:1

2. Distribution of premium for goodwill:

A's share= 10000 * 1/2= 5000

B's share= 10000 * 1/2= 5000

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