A and b sharing profit and loss in the ratio of 2 : 1 day admitted c on 1st January 1994 as partner with the terms that he will give 30000 as capital and 9000 as Goodwill for the 1/6th share it was again decided that the Goodwill amount brought by c will be taken away by old partners make necessary general entry and prepare cash book.
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6th share it was again decided that the Goodwill amount brought by c will be taken away by old partners make necessary general entry and
Answer:
A and b sharing profit and loss in the ratio of 2 : 1 day admitted c on 1st January 1994
Explanation:
1. A's Capital a/c.... Dr. 12000
B's Capital a/c.... Dr. 6000
To Goodwill a/c 18000
(Being goodwill written off in the ratio of 2:1)
2. Cash a/c.... Dr. 38000
To C's Capital a/c 30000
To Premium for Goodwill a/c 8000
(Being capital and part premium for goodwill brought in by C)
3. Premium for Goodwill a/c... Dr. 8000
C's Capital a/c.... Dr. 2000
To A's Capital a/c 6667
To B's Capital a/c 3333
(Being premium for goodwill distributed among the partners in the ratio of 2:1)
Working Note:
Distribution of premium for goodwill:
A's share= 10000 * 2/3= 6667
B's share= 10000 * 1/3= 3333
writing off Goodwill A's capital account will be debited by = 18,000 x 2/3 = Rs.12,000 B's capital account will be debited by = 18,000 X 1/3 = Rs. 6,000
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