Question

Illustration 22 (Goodwill Existing in the Books at the Time of Admission and written off).
X and Y are partners in a firm sharing profits in the ratio of 4:3. On 1st April 2019, they
admitted Z as a partner. Z brought in 1,00,000 for his capital and 21,000 for 1/3rd share of
goodwill premium. On Z's admission, goodwill appeared in the books of the firm at 28,000.
Pass necessary Journal entries on Z's admission.​

Answer 1

Answer:

x's capital a/c. dr. 16000

y's capital a/c. dr. 12000

To Goodwill a/c

Cash a/c dr 121000

To z's capital a/c. 100000

To premium for Goodwill a/c. 21000

premium for Goodwill a/c. dr. 21000

To x's capital a/c. 12000

To y's capital a/c. 9000

Explanation:

hello friend , in this type of questions , you just have to write off Goodwill appears in the book by distributing the amount in old partners in old ratio.

Then show the entry of what new partner is bringing for the firm.

Then distribute his premium among old partners in sacrificing ratio which is not given in this question so we let our old ratio as sacrificing ratio

I hope now you have no doubt.