Question

x and y are partner with the capital of 13 lakh and 20 lakh De share profit and losses in the ratio of 1 ratio 2 and add z as new partner with 1/5 share​

Answer 1

Answer:

Explanation:

Calculation of hidden goodwill:

Total Capital of the firm after admission= 50000+50000+80000+40000

                                                                = 220000

Total capital of the firm based on Z's capital= 80000 * 4/1

                                                                        = 320000

Hidden goodwill= 320000-220000= 100000

Z's share of Goodwill= 100000 * 1/4= 25000

                                               JOURNAL

1. Cash a/c.....                                                  Dr.              80000

         To Z's Capital a/c                                                               80000

(Being capital brought in by Z)

2. Z's Capital a/c...                                          Dr.               25000

         To X's Capital a/c                                                               12500

         To Y's Capital a/c                                                                12500

(Being Z's share of goodwill distributed among the partners in the ratio of 1:1)