A, B and C are the partners sharing profit and loss in the ratio of 3 : 2:4. They maintain their
capital accounts by fixed capital method. They admitted D as a new partner. D brought * 70,000
as capital and 30,000 as share of goodwill in cash. At the time of admission of D, the balance
of goodwill was 45,000 in the balance sheet of the firm. At the time of admission, goodwill is
valued of 1,80,000. New ratio of A, B, C and D decided at 1:1:1:1.
Answers
Answer:
Hope it will help you
Explanation:
A, B & C are partners sharing profits and loss in the ratio 3:2:1. They decide to change their profit sharing ratio to 2:2:1. To gave effect to this new profit sharing ratio they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet.
B's Capital A/c Dr.
C's Capital A/c Dr.
To A's Capital A/c 2,000
1,000 3,000
Goodwill A/c Dr.
To A's Capital A/c
To B's Capital A/c
To C's Capital A/c 30,000
12,000
12,000
6,000
A's Capital A/c Dr.
B's Capital A/c Dr.
C's Capital A/c Dr.
To Goodwill A/c 12,000
12,000
6,000 30,000
A's Capital A/c Dr.
To B's Capital A/c
To C's Capital A/c 3,000 2,000
1,000
HARD
Help best friend
Study later
ANSWER
Sharing of profit ( Old Ratio) = 15000 : 10000 : 5000
Sharing of profit ( New Ratio) = 12000 : 12000 : 6000
Difference - A Cr. 3000 ; B Dr. 2000 ; C Dr. 1000