Q. 55. Charu and Deepika were partners sharing profits in the ratio of 3:2. They
admitted Esha, as a new partner and the new ratio is agreed at 4: 3:2. On the date of
Esha's admission, the Balance Sheet of Charu and Deepika disclosed General Reserve
1,20,000; Dr. balance in Profit & Loss Account 40,000; Investments 2,00,000 and
Investment Fluctuation Reserve 60,000.
The following was agreed upon Eshas' admission :
(i) Esha will bring 3,00,000 as her Capital and her share of goodwill premium
in cash.
(ii) Goodwill of the firm be valued 1,80,000.
(iii) The market value of investments was 2,30,000.
Pass the necessary journal entries.
Answers
Explanation:
Its just for explanation i have not made journal seriously just rough
if u want u can make working notes more briefly but according to me its enough
I hope it helped u..!
General reserve a/c dr 1,20,000
To charu's capital a/c 72,000
to deepika's capital a/c. 48,000
Investment fluctuation reserve a/c dr. 60,000
to charu's capital a/c. 36,000
to deepika's capital a/c 24,000
Investmrnts a/c dr 30,000
to revaluation a/c 30,000
revaluation a/c dr 30,000
to charu's capital a/c 18,000
to deepika's capital a/c 12,000
charu's capital a/c dr 24,000
deepika's capital a/c dr 16,000
to profit & loss a/c 40,000
cash a/c. dr 3,40,00/
to premium for goodwill a/c 40,000
to esha's capital a/c. 3,00,000
premium for goodwill a/c dr 40,000
to charu's capital a/c 28,000
to deepika's capital a/c 12,000
(sacrificing ratio)
Explanation:
sacrificing ratio = old ratio - new ratio
charu= 3/5 - 4/9= 7/45
deepika= 2/5 - 3/9 = 3/45
7:3
premium for goodwill 1,80,000×2/9 (in new partner ratio) = 40,000
general reserve nd profit nd loss transfered in old ratio