Question

X and Y are partners with capital of 13,00,000 and 20,00,000. They
share profits in the ratio of 1: 2. They admit Z as a partner with 1/5th share in the
profits of the firm. Z brings in 12,00,000 as his share of capital. The Profit and Loss
Account showed a credit balance of 6,00,000 as on the date of admission of Z. Give
the necessary Journal entries to record the goodwill.​

Answer 1

Answer:

In question goodwill is hide

goodwill is calculated on the basis of Z capital

Z brings capital 1200000 for 1/5 share according to his share total capital of firm will be 1200000×5/1=6000000

(-) capital of old partners

(1300000+2000000+600000)=3900000

(-) capital of new partner. = 1200000

goodwill of firm = 900000

(profit and loss balance of 600000 is added to old partner capital a/c because their capital increased with this amount)

Z share in goodwill 900000×1/5=180000

divided in sacrifice ratio 1;:2

As it is not mention new partner brings his share of goodwill in cash so we open his current a/c for good will

Z current a/c. dr 180000

To X capital account. 60000

To Y capital account 120000