Question

B and C are partners sharing profit and losses 3:1. D is admitted as a partner with 15000 goodill for 1/3rd share, in future sharing profit equally. Pass journal entries​

Answer 1

Answer:

Journal -

Premium for Goodwill a/c. Dr ₹15,000

C's Capital a/c(₹45,000×1/12). Dr ₹3,750

To B's Capital a/c(₹45,000×5/12). ₹18,750

(Being goodwill adjusted among partners)

Explanation:

1.Calculation of sacrificing ratio -

B a/c = 3/4 - 1/3 = 5/12 (sacr)

C a/c = 1/4 - 1/3 = (1/12) (gain)

2.D's share of goodwill = ₹15,000

His share of profit = 1/3

So, Firm's total goodwill = ₹15,000 × 3

= ₹45,000