Question

Find x and y
Acco
G
AC
& B
So®
H
y​

Answer 1

Answer:

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Answer 2

Answer:

Working Note: 

Calculation of hidden goodwill:

Total Capital of the firm after admission= 50000+50000+80000+40000

                                                                 = 220000

Total capital of the firm based on Z's capital= 80000 * 4/1

                                                                         = 320000

Hidden goodwill= 320000-220000= 100000

Z's share of Goodwill= 100000 * 1/4= 25000

                                                JOURNAL

1. Cash a/c.....                                                  Dr.              80000

          To Z's Capital a/c                                                               80000

(Being capital brought in by Z)

2. Z's Capital a/c...                                          Dr.               25000

          To X's Capital a/c                                                               12500

          To Y's Capital a/c                                                                12500

(Being Z's share of goodwill distributed among the partners in the ratio of 1:1)

Step-by-step explanation:

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