For which share of goodwill a partner is entitled at the time of his retirement? Post category:Accountancy Reading time:1 mins read SOLUTION Retiring partner is entitled to goodwill according to his share of profit in the firm. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat treatment is made of accumulated profits and losses on the retirement of partner? Next PostHow goodwill is recorded on the retirement or death of a partner? You Might Also Like When salary to partners, interest on capital, drawings, interest on drawings, Interest on Drawing etc. are recorded in capital accounts of partners, which method we are following to maintain the capital account? September 23, 2022 Atul and Neera were partners in a firm sharing profits in the ratio of 3: 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at Rs. 2,00,000. Mitali brings her share of goodwill premium of Rs. 20,000 in cash, which is entirely credited to Atul’s Capital Account Calculate the new profit-sharing ratio. (C.B.S.E. 2019, M.P.) September 27, 2022 Naresh and Sukesh are partners with capitals of Rs. 3,00,000 each as on 31st March, 2019. Naresh had withdrawn Rs. 50,000 against capital on 1st October, 2018 and also Rs. 1,00,000 besides the drawings against capital. Sukesh also had drawings of Rs. 1,00,000. Interest on capital is to be allowed @ 10% p.a. Net profit for the year was Rs. 2,00,000, which is yet to be distributed. Pass the Journal entries for interest on capital and distribution of profit. July 21, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
When salary to partners, interest on capital, drawings, interest on drawings, Interest on Drawing etc. are recorded in capital accounts of partners, which method we are following to maintain the capital account? September 23, 2022
Atul and Neera were partners in a firm sharing profits in the ratio of 3: 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at Rs. 2,00,000. Mitali brings her share of goodwill premium of Rs. 20,000 in cash, which is entirely credited to Atul’s Capital Account Calculate the new profit-sharing ratio. (C.B.S.E. 2019, M.P.) September 27, 2022
Naresh and Sukesh are partners with capitals of Rs. 3,00,000 each as on 31st March, 2019. Naresh had withdrawn Rs. 50,000 against capital on 1st October, 2018 and also Rs. 1,00,000 besides the drawings against capital. Sukesh also had drawings of Rs. 1,00,000. Interest on capital is to be allowed @ 10% p.a. Net profit for the year was Rs. 2,00,000, which is yet to be distributed. Pass the Journal entries for interest on capital and distribution of profit. July 21, 2022