Accountancy, asked by sunnyemmanuel5848, 5 months ago

A and B were partners in a firm sharing profits in ratio of 3:1. Goodwill appeared in books at 4,40,000. R was admitted to the firm. the new profit sharing ratio amoung A,B and R was 2:2:1. R brought 1,00,000 as capital and necessary amount of cash for his goodwill. the goodwill of the firm was valued at 2,50,000. the new firm earned 50,000 as profit after R's admission. Pass necessary entries

Answers

Answered by DollyRajoriya
0

(i) Anu's Capital a/c... Dr. 330000

Bhagwan's Capital a/c.... Dr. 110000

To Goodwill a/c 440000

(Being goodwill written off)

(ii) Bank a/c.... Dr. 150000

To Raja's Capital a/c 100000

To Premium for Goodwill a/c 50000

(Being cash and premium for goodwill brought in by Raja)

(iii) Premium for goodwill a/c.... Dr. 50000

Bhagwan's Capital a/c.... Dr. 37500

To Anu's Capital a/c 87500

(Being premium for goodwill and Bhagwan's gain transferred to Anu)

Working Note:

Calculation of sacrificing ratio:

Anu's sacrifice= 3/4- 2/5= 7/20

Bhagwan's gain= 1/4- 2/5= -3/20

Total goodwill of the firm= 250000

Bhagwan's share= 3/20* 250000

= 37500

Answered By

Dolly Rajoriya

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