Question

Ramesh, Mahesh and Suresh were partners in a firm sharing profits in the ratio of 3:3:2. Their respective
fixed capitals were : Ramesh Rs. 5,00,000; Mahesh Rs.4,00,000 and Suresh Rs 3,00,000. They admitted
Govind as a new partner for 1/5 share in the profits. Govind brought Rs.4,00,000 as his capital and the
necessary amount for goodwill premium. Their new profit sharing ratio will be 2:1:1:1. Calculate the value
of goodwill of the firm, showing your workings clearly, Pass necessary journal entries for the above
transactions on Govind's admission.​

Answer 1

Answer:

Bank a/c ...Dr 4,00,000

to govid's capital a/c 4,00,000

bank a/c Dr 80,000

to premium for goodwill a/c 80,000

Explanation:

calculation of goodwill

total firm capital = 4,00,000 × 5/1 = 20,00,000

total partner's capiatl

ramesh 5,00,000

Mahesh 4,00,000

suresh 3,00,000

govind. 4,00,000

total 16,00,000

goodwill = 20,00,000 - 16,00,000 = 4,00,000

govind share of goodwill = 4,00,000 × 1/5 = 80,000

Answer 2

Explanation:

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