X and Y are partners with capital of ₹ 8,000 and ₹ 6,000 sharing profit in the ratio of 3/5 and 2/5.On 1st April, 2017, they admit Z on the condition that he will bring ₹ 5,000 as capital and ₹ 1,000 for goodwill. His share will be 1/5, which he will receive equally from X and Y. It was also decided that the goodwill amount will not remain in the business and will be withdrawn by partners.
Answers
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:
"His" (and any subsequent words) was ignored because we limit queries to 32 words.
X and Y are partners with capital of ₹ 8,000 and ₹ 6,000 sharing profit in the ratio of 3/5 and 2/5.On 1st April, 2017, they admit Z on the condition that he will bring ₹ 5,000 as capital and ₹ 1,000 for goodwill. His share will be 1/5, which he will receive equally from X and Y