Commerce Exam > Commerce Questions > Goodwill is valued 40 000 and rohan is to bri...
Start Learning for Free
Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner?
Most Upvoted Answer
Goodwill is valued 40 000 and rohan is to bring in the necessary amoun...
Goodwill is valued 49000 and rani is to bring in the necessary amount in cash as premiums for goodwill and 80000as capital for 1forth share show working not e of admission of a partner
Community Answer
Goodwill is valued 40 000 and rohan is to bring in the necessary amoun...
Admission of a Partner
Admission of a partner involves the introduction of a new partner into an existing partnership firm. In this case, Rohan is joining the partnership and bringing in cash for goodwill and capital.
Calculation of Premium for Goodwill
Goodwill is valued at $40,000. Since Rohan is joining for a 1/4th share, the premium for goodwill will be calculated as follows:
Goodwill = Goodwill Value / Total number of partners
Goodwill = $40,000 / 4
Goodwill = $10,000
Calculation of Capital Contribution
Rohan is also required to bring in $60,000 as capital for his 1/4th share in the partnership.
Journal Entry for Admission of Rohan
The journal entry for Rohan's admission will be as follows:
- Cash A/c Dr. (Goodwill) $10,000
- Cash A/c Dr. (Capital) $60,000
- To Rohan's Capital A/c $70,000
Explanation
- Rohan is bringing in $10,000 as premium for goodwill and $60,000 as capital, totaling $70,000 for his 1/4th share in the partnership.
- This transaction increases the total capital of the partnership and Rohan's capital account is credited with $70,000.
- The cash and goodwill accounts are debited to reflect the increase in assets and the payment made by Rohan for his admission.
In conclusion, the admission of a new partner involves the calculation of goodwill premium and capital contribution, which are recorded in the books of accounts through appropriate journal entries.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner?
Question Description
Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner?.
Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner?.
Solutions for Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner? defined & explained in the simplest way possible. Besides giving the explanation of
Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner?, a detailed solution for Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner? has been provided alongside types of Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner? theory, EduRev gives you an
ample number of questions to practice Goodwill is valued 40 000 and rohan is to bring in the necessary amount in cash as premium for goodwil and 60000 as capital for 1 forth share show working note of admission of a partner? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup