Question 35 Chapter 5 of Class 12 Part - 1 - USHA Publication

Question 35 Chapter 5 of Class 12 Part - 1 - USHA Publication

35. (Goodwill Existing in the books at the time of Admission and Retained in the Books) Seeta and Geeta are partners sharing profits equally. They admit Meeta for 1/5th share in profits w.e.f. 1" April, 2020. Goodwill was valued at 10,00,000 on the admission of Meeta. Goodwill existed in the balance sheet as at 31" march, 2020 at 8,00,000. It was agreed among the partners to carry forward the existing goodwill at its book value. Meeta brought his share of goodwill by cheque.
Pass the Journal entries for goodwill.

We are providing a solution of Question 34 Chapter 5 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:

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The video consists solution of question numbers from 33 to 35 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 35 from the flowing video by using time stamps of the video.

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The solution of Question 35 Chapter 5 of Class 12 Part - 1 - USHA Publication : - 

Journal

Date	Particulars		L.F.	Debit	Credit
i)	Bank A/c	Dr.		40,000
	To Premium for goodwill A/c				40,000
	(Being premium for goodwill brought by Meeta is equal to 1/5th of ₹ 2,00,000 i.e. 10,00,000 – 8,00,000 being existing goodwill)
ii)	Premium for goodwill A/c	Dr.		40,000
	To Seeta’s Capital A/c				20,000
	To Geeta’s Capital A/c				20,000
	(Being premium for goodwill distributed among old partners in their sacrificing ratio i.e., 1 : 1)

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