Question

Ques7. X and Y are two partners in a firm sharing profits and losses in the ratio 6:7. On 15 April, 2018 they admit Z
as a new partner for 1/5th share in the profits who brings Rs. 5,50,000 as his capital but fails to bring any amount
towards goodwill. The firm's goodwill on Z's admission was valued at Rs. 3,90,000. Goodwill already appearing in
the books is Rs. 1,30,000. Record necessary journal entries assuming capitals of the partners are fixed.​

Answer 1

Answer:

Explanation:

*cash a/c  dr.             500,000       -

to z's capital a/c                  -       500,000

(being capital brought in)

*z's capital a/c dr.        78,000    -

to x's current a/c                 -          36,000

to y's current a/c                 -          42,000

(being premium of goodwill given through z's capital a/c to old partners in sacrifising ratio)

{ wn. -

z's share of goodwill= 390,000 x 1/5 = 78,000

x and y sacrifising ratio is 6;7 (acc. to assumption)

x will get= 78,000  x 6/13 = 36,000

y will get=  78,000 x 7/13 = 42,000}

*x's current a/c dr.      60,000      -

y's current a/c  dr.      70,000       -

to goodwill a/c                 -              1,30,000

(being goodwill written off)