Accountancy

A and B are partners sharing profits and losses in the ratio of 3 : 2. They admit C as partner in the firm for 1/4th share in profits which he takes 1/6th from A and 1/12th from B. C brings in only 60% of his share of firm’s goodwill. Goodwill of the firm has been valued at Rs. 1,00,000. Pass necessary journal entries to record this arrangement.

Solution

Continue ReadingA and B are partners sharing profits and losses in the ratio of 3 : 2. They admit C as partner in the firm for 1/4th share in profits which he takes 1/6th from A and 1/12th from B. C brings in only 60% of his share of firm’s goodwill. Goodwill of the firm has been valued at Rs. 1,00,000. Pass necessary journal entries to record this arrangement.

A and B are partners sharing profits in the ratio of 2 : 1. They admit C for 1/4th share in profits. C brings in Rs. 30,000 for his capital and Rs. 8,000 out of his share of Rs. 10,000 for goodwill. Before admission, goodwill appeared in books at Rs. 18,000. Give Journal entries to give effect to the above arrangement.

Solution

Continue ReadingA and B are partners sharing profits in the ratio of 2 : 1. They admit C for 1/4th share in profits. C brings in Rs. 30,000 for his capital and Rs. 8,000 out of his share of Rs. 10,000 for goodwill. Before admission, goodwill appeared in books at Rs. 18,000. Give Journal entries to give effect to the above arrangement.

A and B were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted C as a new partner for 3/7th share in the profit and the new profit-sharing ratio will be 2 : 2 : 3. C brought Rs. 2,00,000 as his capital and Rs. 1,50,000 as premium for goodwill. Half of their share of premium was withdrawn by A and B from the firm. Calculate sacrificing ratio and pass necessary Journal entries for the above transactions in the books of the firm.

Solution

Continue ReadingA and B were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted C as a new partner for 3/7th share in the profit and the new profit-sharing ratio will be 2 : 2 : 3. C brought Rs. 2,00,000 as his capital and Rs. 1,50,000 as premium for goodwill. Half of their share of premium was withdrawn by A and B from the firm. Calculate sacrificing ratio and pass necessary Journal entries for the above transactions in the books of the firm.

A and B are partners in a business sharing profits and losses in the ratio of 1/3rd and 2/3rd. On 1st April, 2019, their capitals were Rs. 8,000 and Rs. 10,000 respectively. On that date, they admit C in partnership and give him 1/4th share in the future profits. C brings Rs. 8,000 as his capital and Rs. 6,000 as goodwill. The amount of goodwill is withdrawn by the old partners in cash. Draft the journal entries and show the Capital Accounts of all the Partners. Calculate proportion in which partners would share profits and losses in future.

Solution

Continue ReadingA and B are partners in a business sharing profits and losses in the ratio of 1/3rd and 2/3rd. On 1st April, 2019, their capitals were Rs. 8,000 and Rs. 10,000 respectively. On that date, they admit C in partnership and give him 1/4th share in the future profits. C brings Rs. 8,000 as his capital and Rs. 6,000 as goodwill. The amount of goodwill is withdrawn by the old partners in cash. Draft the journal entries and show the Capital Accounts of all the Partners. Calculate proportion in which partners would share profits and losses in future.

X and Y are partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2019, they admit Z as a partner for 1/4th share in the profits. Z contributed following assets towards his capital and for his share of goodwill: Stock Rs. 60,000; Debtors Rs. 80,000; Land Rs. 1,00,000, Plant and Machinery Rs. 40,000. On the date of admission of Z, the goodwill of the firm was valued at Rs. 6,00,000. Pass necessary Journal entries in the books of the firm on Z’s admission.

Solution

Continue ReadingX and Y are partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2019, they admit Z as a partner for 1/4th share in the profits. Z contributed following assets towards his capital and for his share of goodwill: Stock Rs. 60,000; Debtors Rs. 80,000; Land Rs. 1,00,000, Plant and Machinery Rs. 40,000. On the date of admission of Z, the goodwill of the firm was valued at Rs. 6,00,000. Pass necessary Journal entries in the books of the firm on Z’s admission.

Anu and Bhagwan were partners in a firm sharing profits in the ratio of 3 : 1. Goodwill appeared in the books at Rs. 4,40,000. Raja was admitted to the partnership. The new profit-sharing ratio among Anu, Bhagwan and Raja was 2 : 2 : 1. Raja brought Rs. 1,00,000 for his capital and necessary cash for his goodwill premium. Goodwill of the firm was valued at Rs. 2,50,000. Record necessary Journal entries in the books of the firm for the above transactions.

Solution

Continue ReadingAnu and Bhagwan were partners in a firm sharing profits in the ratio of 3 : 1. Goodwill appeared in the books at Rs. 4,40,000. Raja was admitted to the partnership. The new profit-sharing ratio among Anu, Bhagwan and Raja was 2 : 2 : 1. Raja brought Rs. 1,00,000 for his capital and necessary cash for his goodwill premium. Goodwill of the firm was valued at Rs. 2,50,000. Record necessary Journal entries in the books of the firm for the above transactions.

A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit C into partnership for 1/5th share. C brings Rs. 30,000 as capital and Rs. 10,000 as goodwill. At the time of admission of C, goodwill appeared in the Balance Sheet of A and B at Rs. 3,000. New profit-sharing ratio of the partners will be 5 : 3 : 2. Pass necessary Journal entries.

Solution

Continue ReadingA and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit C into partnership for 1/5th share. C brings Rs. 30,000 as capital and Rs. 10,000 as goodwill. At the time of admission of C, goodwill appeared in the Balance Sheet of A and B at Rs. 3,000. New profit-sharing ratio of the partners will be 5 : 3 : 2. Pass necessary Journal entries.

Anshul and Parul are partners sharing profits in the ratio of 3 : 2. They admit Payal as partner for 1/4th share in profits on 1st April, 2019. Payal brings Rs. 5,00,000 as capital and her share of goodwill by cheque. It was agreed to value goodwill at three years’ purchase of average profit of last four years.

Solution

Continue ReadingAnshul and Parul are partners sharing profits in the ratio of 3 : 2. They admit Payal as partner for 1/4th share in profits on 1st April, 2019. Payal brings Rs. 5,00,000 as capital and her share of goodwill by cheque. It was agreed to value goodwill at three years’ purchase of average profit of last four years.

X and Y are partners sharing profits in the ratio of 3: 1. Z is admitted as a partner for which he pays Rs. 30,000 for goodwill in cash. X, Y and Z  decide to share the future profits in equal proportion. You are required to pass a single Journal entry to give effect to the above arrangement

Solution

Continue ReadingX and Y are partners sharing profits in the ratio of 3: 1. Z is admitted as a partner for which he pays Rs. 30,000 for goodwill in cash. X, Y and Z  decide to share the future profits in equal proportion. You are required to pass a single Journal entry to give effect to the above arrangement