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Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm?
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Nirupama and Anupama were partners in a firm sharing profit and losses...
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Nirupama and Anupama were partners in a firm sharing profit and losses...
**General Entries for Admitting a New Partner and Valuing Goodwill**
1. **Admission of Kumar as a New Partner**
To record the admission of Kumar as a new partner, the following general entry is made:
Particulars | Debit | Credit
--- | --- | ---
Kumar's Capital Account | - | 200,000
Goodwill Account | - | 120,000
Cash/Bank Account | - | 80,000
Nirupama's Capital Account | - | 60,000
Anupama's Capital Account | - | 100,000
Explanation:
- Kumar's Capital Account is debited with the amount of capital introduced by him, which is $200,000.
- The Goodwill Account is debited with the share of goodwill remembered for Kumar's share, which is $120,000.
- Cash/Bank Account is debited with the remaining amount, which is the difference between Kumar's capital and his share of goodwill ($200,000 - $120,000 = $80,000).
- Nirupama's Capital Account is credited with her share of goodwill ($60,000).
- Anupama's Capital Account is credited with her share of goodwill ($100,000).
2. **Adjustment of Old Partners' Capitals**
To adjust the capital accounts of the old partners, the following general entry is made:
Particulars | Debit | Credit
--- | --- | ---
Nirupama's Capital Account | - | 20,000
Anupama's Capital Account | - | 20,000
Explanation:
- Nirupama's Capital Account is debited with her share of goodwill adjustment ($60,000 - $40,000 = $20,000).
- Anupama's Capital Account is debited with her share of goodwill adjustment ($100,000 - $80,000 = $20,000).
3. **Distribution of Goodwill Adjustment**
To distribute the goodwill adjustment among the old partners, the following general entry is made:
Particulars | Debit | Credit
--- | --- | ---
Nirupama's Capital Account | - | 10,000
Anupama's Capital Account | - | 10,000
Explanation:
- Nirupama's Capital Account is debited with her share of goodwill adjustment ($20,000 - $10,000 = $10,000).
- Anupama's Capital Account is debited with her share of goodwill adjustment ($20,000 - $10,000 = $10,000).
**Summary:**
1. Kumar's capital of $200,000 is recorded in the books.
2. Goodwill of the firm valued at $120,000 is recorded.
3. Cash/Bank Account is debited with the remaining amount ($80,000) after deducting goodwill from Kumar's capital.
4. Nirupama's and Anupama's capital accounts are adjusted for the change in goodwill.
5. The adjustment of goodwill is distributed equally between Nirupama and Anupama.
1. **Admission of Kumar as a New Partner**
To record the admission of Kumar as a new partner, the following general entry is made:
Particulars | Debit | Credit
--- | --- | ---
Kumar's Capital Account | - | 200,000
Goodwill Account | - | 120,000
Cash/Bank Account | - | 80,000
Nirupama's Capital Account | - | 60,000
Anupama's Capital Account | - | 100,000
Explanation:
- Kumar's Capital Account is debited with the amount of capital introduced by him, which is $200,000.
- The Goodwill Account is debited with the share of goodwill remembered for Kumar's share, which is $120,000.
- Cash/Bank Account is debited with the remaining amount, which is the difference between Kumar's capital and his share of goodwill ($200,000 - $120,000 = $80,000).
- Nirupama's Capital Account is credited with her share of goodwill ($60,000).
- Anupama's Capital Account is credited with her share of goodwill ($100,000).
2. **Adjustment of Old Partners' Capitals**
To adjust the capital accounts of the old partners, the following general entry is made:
Particulars | Debit | Credit
--- | --- | ---
Nirupama's Capital Account | - | 20,000
Anupama's Capital Account | - | 20,000
Explanation:
- Nirupama's Capital Account is debited with her share of goodwill adjustment ($60,000 - $40,000 = $20,000).
- Anupama's Capital Account is debited with her share of goodwill adjustment ($100,000 - $80,000 = $20,000).
3. **Distribution of Goodwill Adjustment**
To distribute the goodwill adjustment among the old partners, the following general entry is made:
Particulars | Debit | Credit
--- | --- | ---
Nirupama's Capital Account | - | 10,000
Anupama's Capital Account | - | 10,000
Explanation:
- Nirupama's Capital Account is debited with her share of goodwill adjustment ($20,000 - $10,000 = $10,000).
- Anupama's Capital Account is debited with her share of goodwill adjustment ($20,000 - $10,000 = $10,000).
**Summary:**
1. Kumar's capital of $200,000 is recorded in the books.
2. Goodwill of the firm valued at $120,000 is recorded.
3. Cash/Bank Account is debited with the remaining amount ($80,000) after deducting goodwill from Kumar's capital.
4. Nirupama's and Anupama's capital accounts are adjusted for the change in goodwill.
5. The adjustment of goodwill is distributed equally between Nirupama and Anupama.
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Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm?
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Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm?.
Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm?.
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Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm?, a detailed solution for Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm? has been provided alongside types of Nirupama and Anupama were partners in a firm sharing profit and losses in the ratio 3 ratio 5 they admitted Kumar as a new partner for 14 share in the profit the new profit sharing ratio will be 3 ratio 3 ratio 2 Kumar prod 200000 as its capital and the necessary amount of amount of goodwill remembered for his share of goodwill the Goodwill of the firm was valued at 120000 pass necessary general entries for the above transaction in the books of the firm? theory, EduRev gives you an
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