Veena and Somesh were partners in a firm with capitals of ₹1,00,000 and ₹80,000 respectively. They admitted Nisha on 1st April, 2019 as a new partner for 1/4th share in the future profits of the firm. Nisha brought ₹90,000 as her capital. Nisha acquired her share as 1/12th from Veena and the remaining from Somesh. Calculate the value of goodwill of the firm and pass the necessary journal entries on Nisha’s admission.
Answers
Answer:
Explanation:
JOURNAL ENTRIES
bank A/c 90000
To Nisha 's capital a/c 90000
(Being Nisha brought capital )
Nisha 's current A/c 22500
To Veena 7500
To Somesh 15000
(Being goodwill divided )
Calculation
Goodwill = Actual total capital
= 100000 + 80000+ 90000
= 270000
Nisha's Capital = 90000 * 4= 360000
Goodwill = 360000 - 270000
= 90000
Nisha's share = 90000 *1/4 = 22500
Sacrifice ratio =
Veena = 1/12
Somesh = 1/4 - 1/12= 2/12
= 1:2
Answer:
Goodwill of the firm: 90000
Entries: 1) Bank A/C. Dr. 90000
To Nisha's Capital A/C. 900000
2). Nisha's current A/C. Dr. 22500
To Veena 7500
To Somesh. 15000
Explanation:
G/w: Total capital of the firm
100000+90000+80000
=270000
Nisha's Capital:90000*4=360000
G/W: 360000-270000
=90000
Nisha's Share=90000*1/4=22500
Sacrifice ratio:
Veena=1/12
Somesh=1/4 - 1/12 = 2/12
= 1:2