Krishna and Suresh were partners in a firm sharing profits in the ratio of 3:1. On Ist April,2015 they
admitted Rahul as a new partner for 1/5 share in profits of the firm. On the date of Rahul’s admission
the Balance Sheet of Krishna and Suresh showed a General Reserve of Rs.1,20,000, a debit balance of
Rs.60,000 in Profit and Loss A/c and Workmen Compensation Reserve Of Rs.1,50,000.
The following was agreed upon on Rahul’s admission:
i)Rahul will bring Rs.1,50,000 as his capital and his share of goodwill premium in cash.
ii) goodwill of the firm be valued at Rs.2,40,000.
iii) There was a claim of workmen compensation for Rs.1,70,000.
iv) The partners decided to share future profits in the ratio of 3:1:1.
Pass necessary journal entries for the above on Rahul’s admission.
Answers
Answer:
Reserve Account for Dr. General: Rs. 120,000,
(i)The capital accounts for Cr. Krishna is worth Rs. 90,000 and Suresh, Rs. 30,000.
(ii) Dr. Krishna's Capital Account is for Rs. 45,000, while Suresh's is for Rs.
Rs. 60,000 in Cr. Profit and Loss Account.
(iii) Rs. 1,50,000 in the Dr. Workmen Compensation Fund A/c and Rs. 20,000 in the Ravaluation A/c.
Account for Workmen's Compensation: Rs. 170,000.
(iv) Rs. 15,000 in Dr. Krishna's Capital Account and Rs. 5,000 in Suresh's Capital Account.
Revaluation Account in Cr: Rs 20,000.
(v) Doctor Cash/Bank Account: Rs. 1,98,000.
Rs. 1,15,000 in Cr. Rahul's capital account and Rs. 48,000 in his premium for the goodwill account.
(vi) Dr. Premium for the Goodwill Account: Rs.
Suresh's capital account is for $12,000, and Cr. Krishna's is for $36,000.
Explanation:
Reserve Account for Dr. General: Rs. 120,000,
(i)The capital accounts for Cr. Krishna is worth Rs. 90,000, and Suresh, Rs. 30,000.
(ii) Dr. Krishna's capital account is for Rs. 45,000, while Suresh's is for Rs.Rs. 60,000 in Cr. Profit and Loss Account.
(iii) Rs. 1,50,000 in the Dr. Workmen's Compensation Fund A/C and Rs. 20,000 in the Ravaluation A/C.Account for Workmen's Compensation: Rs. 170,000
(iv) Rs. 15,000 in Dr. Krishna's capital account and Rs. 5,000 in Suresh's capital account evaluation account; total in Cr: Rs 20,000
(v) Doctor Cash/Bank Account: Rs. 1,98,000.
Rs. 1,15,000 in Cr. Rahul's capital account and Rs. 48,000 in his premium for the goodwill account.
(vi) Dr. Premium for the Goodwill Account: Rs.
Suresh's capital account is for $12,000, and Cr. Krishna's is for $36,000.
To learn more about Capital A/c visits,
https://brainly.in/question/47897131
To learn more about the Workmen Compensation Fund visits,
https://brainly.in/question/15229760
#SPJ3