Disha and Divya are partners in a firm sharing profits in the ratio of 3 : 2 respectively. The fixed capital of Disha is ₹ 4,80,000 and of Divya is ₹ 3,00,000. On 1st April, 2018 they admitted Hina as a new partner for 1/5th share in future profits. Hina brought ₹ 3,00,000 as her capital. Calculate value of goodwill of the firm and record necessary journal entries on Hina’s admission.
Answers
Answer:
Notes:- Biswa's share includes share of profit and interest on capital
Share of profit = 44,000
Add;Interest on capital= 36,000
Total = 80,000
Guaranteed amount = 82,000
The deficiency of 2000 is to be borne by Divya.
PROFIT AND LOSS APPROPRIATION ACCOUNT
Particulars Amount Particulars Amount
To Interest on capital
Anwar- 8,00,000*6%=48,000
Biswas-6,00,000*6%=36,000
Divya-4,00,000*6%=24,000 1,08,000 By net profit 3,12,000
To Partner's salary A/c
Biswas-4000*12 = 48,000
Divya-6000*4 = 24,000 72,000
To Profit Transferred to
Anwar's capital A/c- 66000
Biswa's capital A/c -44,000
Add:-Divya's share 2000
Divya = 22,000
Less:deficiency cont =(2000) 1,26,000
Total 3,12,000
Solution:
Journal
Particulars Debit Rs. Credit Rs.
Bank A/c Dr. 3,00,000
To Hina's Capital A/c 3,00,000
(Being capital brought in by Hina)
Hina's Current A/c Dr. 84,000
To Disha's Current A/c 50,400
To Divya's Current A/c 33,600
(Being Hina's Share of goodwill adjusted through current accounts)
Working Notes: Calculation of Hidden Goodwill
Total Capital of the firm on basis of Hina's capital (3,00,000 x )
= 15,00,000
Less : Adjustment capital of dd partners + Incoming partners capital
=
Hina's share of Goodwill - 4,20,000 x = 84,000