Gaurav and Neeraj are partners in a firm Gopal was admitted in firm for 1/5 share.Gopal bought stock 4000 building 10000 debtor 6000 and creditors 12000. on the date of admission general Reserve of rupees 8000 was shown in the book of account. Gopal will bring his share of goodwill rupees 2,000 in cash his capital was determined rupees 17000 and rest amount will be brought in cash. give necessary general entries at the time of admission of Gopal.
Answers
JOURNAL
1. Stock a/c.... Dr. 60000
Debtors a/c... Dr. 80000
Land a/c.... Dr. 100000
Plant and machinery a/c... Dr. 40000
To Z's Capital a/c 130000
To Premium for goodwill a/c 150000
(Being capital and premium for goodwill brought in by C in the form of assets)
2. Premium for Goodwill a/c.... Dr. 150000
To X's Capital a/c 90000
To Y's Capital a/c 60000
(Being premium for goodwill distributed among partners in the ratio of 3:2)
Working Note:
1. Calculation of Z's share of goodwill:
Z's share of Goodwill= 600000 * 1/4= 150000
Z's share of capital = 280000 - 150000 = 130000
2. Distribution of premium for goodwill:
X's share= 3/5 * 150000= 90000
Y's share= 2/5 * 150000= 60000
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