Q16. P R S are in partnership shoring profils in the ratio of 2:1:1 respectively.
Ruled on is February, 2015 and it is decided that profit sharing ratio between Pandan
future be 3, you are required to fill in the mixing figures in the following our
entry. Also calculate the total value of firm's goodwill.
Particulars
{RS,
S's capital Alc
is compensoles Pand R for the loss in Choreol P.)
Aand 8 contribute Rs. 400,000 and Rs. 3,00,000 respectively as their copitals. They
decide to allow interest an capital a 8 po Thai espective share of srofitis ang
the profit for the year is R$
42.000 before allowing for interest on copitat.
So the distribution of profus
für Where there is no egreement excep' for interesi on capitals and
(i) Where there is a clear agreement that the interest on Capitais will be allowed
even if it involves the
tim in loss.
Answers
Answer:
what is this I am not sure
Answer:
Explanation:
1. A's Capital a/c.... Dr. 12000
B's Capital a/c.... Dr. 6000
To Goodwill a/c 18000
(Being goodwill written off in the ratio of 2:1)
2. Cash a/c.... Dr. 38000
To C's Capital a/c 30000
To Premium for Goodwill a/c 8000
(Being capital and part premium for goodwill brought in by C)
3. Premium for Goodwill a/c... Dr. 8000
C's Capital a/c.... Dr. 2000
To A's Capital a/c 6667
To B's Capital a/c 3333
(Being premium for goodwill distributed among the partners in the ratio of 2:1)
Working Note:
Distribution of premium for goodwill:
A's share= 10000 * 2/3= 6667
B's share= 10000 * 1/3= 3333