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Question 35 Chapter 5 - Unimax Class 12 Part 1 - 2021
35. A and B are partners with capitals of Rs. 13000 and Rs. 11000. They admit C as a new partner with 1/5th share in the profits of the firm. C brings Rs. 8000 as his share of capital. Pass necessary journal entries regarding goodwill.
| Date | Particulars | L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Cash a/c | Dr. | 8,000 | |||
| To C’s Capital a/c | 8,000 | ||||
| (Being Capital brought by new partner in cash) | |||||
| C’s Capital a/c | Dr. | 1,600 | |||
| To A’s Capital a/c | 800 | ||||
| To B’s Capital a/c | 800 | ||||
| (Being compensation paid by C to A & B for his share of G.W.) |
Working Note :
Total Capital of firm = 8000 X 5/1
= Rs. 40000
Value of G.W. = 40000 – (13000 + 11000 + 8000)
=Rs. 8000
C’s Share of goodwill = 1/5 X 8,000
= Rs. 1,600
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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