Question

X and Y are partner sharing profit in the ratio of 4:3 Z is admitted for 15 share and
he bring in Rs. 1, 40,000 as his share of goodwill in cash of which Rs. 1, 20,000 is
credited to X and remaining amount to Y. New profit sharing ratio will be.
(a) 4:3:5
(b) 2:2:1
(C) 1:2:2
(d) 2:1:2​

Answer 1

Explanation:

ANSWER

JOURNAL

1. Stock a/c.... Dr. 60000

Debtors a/c... Dr. 80000

Land a/c.... Dr. 100000

Plant and machinery a/c... Dr. 40000

To Z's Capital a/c 130000

To Premium for goodwill a/c 150000

(Being capital and premium for goodwill brought in by C in the form of assets)

2. Premium for Goodwill a/c.... Dr. 150000

To X's Capital a/c 90000

To Y's Capital a/c 60000

(Being premium for goodwill distributed among partners in the ratio of 3:2)

Working Note:

1. Calculation of Z's share of goodwill:

Z's share of Goodwill= 600000 * 1/4= 150000

Z's share of capital = 280000 - 150000 = 130000

2. Distribution of premium for goodwill:

X's share= 3/5 * 150000= 90000

Y's share= 2/5 * 150000= 60000

Answer 2

Explanation:

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