Question

Give The journal entry for the transfer of profit on realisation​

Answer 1

Answer:

Transfer to the debit of realization account at their gross book values of all accounts of assets excluding cash, bank and the fictitious assets. ... These are transferred to the partners' capital account in their profit sharing ratio by recording the following entry :

Answer 2

Answer:

1. Cash a/c.... Dr. 2000

To Premium for Goodwill a/c 2000

(Being premium for goodwill brought in by D)

2. Premium for Goodwill a/c..... Dr. 2000

To B's Capital a/c 1200

To C's Capital a/c 800

(Being premium brought in by D distributed among the partners in the ratio of 3:2)

Working note:

Distribution of goodwill:

B's share= 3/5 * 2000 = 1200

C's share= 2/5 * 2000= 800