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Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries?
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Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitte...
Journal Entries for Sharing of Profits and Admission of New Partner
The given problem requires us to pass journal entries for the sharing of profits between two partners and the admission of a new partner. Let us break down the problem into different sections and discuss the journal entries required for each section.
Section 1: Sharing of Profits between Manish and Satish
Manish and Satish are sharing profits in a 4:3 ratio. This means that Manish gets 4/7th and Satish gets 3/7th of the profits. The journal entry for this will be:
Profit and Loss Account Debit - To Manish's Capital Account Credit (4/7th share)
Profit and Loss Account Debit - To Satish's Capital Account Credit (3/7th share)
Section 2: Admission of Komal as a New Partner
Komal is admitted for a one-tenth share, which means that he will get 1/10th of the profits. The journal entry for this will be:
Cash/Bank Account Debit - To Komal's Capital Account Credit (for the value of stock)
Komal's Capital Account Debit - To Goodwill Account Credit (for his share of goodwill)
Goodwill Account Debit - To Manish's Capital Account Credit (4/7th share of goodwill)
Goodwill Account Debit - To Satish's Capital Account Credit (3/7th share of goodwill)
Section 3: Payment of Goodwill Share and Interest
Komal's loan account carrying interest at 12% p.a. was raised in the books for his share of goodwill. He paid his goodwill share after 6 months with interest. The journal entries for this will be:
Komal's Loan Account Debit - To Bank/Cash Account Credit (for the payment of goodwill share and interest)
Interest on Komal's Loan Account Debit - To Komal's Loan Account Credit (for the interest component)
Final Thoughts
These journal entries will cover all aspects of the problem and ensure that the accounting is done correctly. It is important to understand the different aspects of the problem and break it down into sections to ensure that the correct journal entries are passed.
The given problem requires us to pass journal entries for the sharing of profits between two partners and the admission of a new partner. Let us break down the problem into different sections and discuss the journal entries required for each section.
Section 1: Sharing of Profits between Manish and Satish
Manish and Satish are sharing profits in a 4:3 ratio. This means that Manish gets 4/7th and Satish gets 3/7th of the profits. The journal entry for this will be:
Profit and Loss Account Debit - To Manish's Capital Account Credit (4/7th share)
Profit and Loss Account Debit - To Satish's Capital Account Credit (3/7th share)
Section 2: Admission of Komal as a New Partner
Komal is admitted for a one-tenth share, which means that he will get 1/10th of the profits. The journal entry for this will be:
Cash/Bank Account Debit - To Komal's Capital Account Credit (for the value of stock)
Komal's Capital Account Debit - To Goodwill Account Credit (for his share of goodwill)
Goodwill Account Debit - To Manish's Capital Account Credit (4/7th share of goodwill)
Goodwill Account Debit - To Satish's Capital Account Credit (3/7th share of goodwill)
Section 3: Payment of Goodwill Share and Interest
Komal's loan account carrying interest at 12% p.a. was raised in the books for his share of goodwill. He paid his goodwill share after 6 months with interest. The journal entries for this will be:
Komal's Loan Account Debit - To Bank/Cash Account Credit (for the payment of goodwill share and interest)
Interest on Komal's Loan Account Debit - To Komal's Loan Account Credit (for the interest component)
Final Thoughts
These journal entries will cover all aspects of the problem and ensure that the accounting is done correctly. It is important to understand the different aspects of the problem and break it down into sections to ensure that the correct journal entries are passed.
Community Answer
Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitte...
Stock A/C dr 25000
To capital A/C 15000
To premium for goodwill A/C 10000
(being new partner bought her share
in kind)
komal's loan A/C dr. 10000
To Manish capital A/C 5714
To Satish capital A/C 4286
( being new partners sanctioned
loan for her goodwill premium.)
After 6 months.
cash A/C dr. 10600
To Komal loan A/C 10600
( being new partner bought
her goodwill after 6 month with interest)
To capital A/C 15000
To premium for goodwill A/C 10000
(being new partner bought her share
in kind)
komal's loan A/C dr. 10000
To Manish capital A/C 5714
To Satish capital A/C 4286
( being new partners sanctioned
loan for her goodwill premium.)
After 6 months.
cash A/C dr. 10600
To Komal loan A/C 10600
( being new partner bought
her goodwill after 6 month with interest)
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Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries?
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Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries?.
Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries?.
Solutions for Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries? in English & in Hindi are available as part of our courses for Commerce.
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Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries?, a detailed solution for Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries? has been provided alongside types of Manish and Satish are sharing profits in 4 : 3 ratio. Komal is admitted for one tenth share. Komal gave stock₹30000 valued at₹ 25000 for capital . But for his share of goodwill ₹10000 ,his loan account carrying interest @ 12% p. a was raised in the books. He ,as per agreement paid his Goodwill share after 6 months with interest. pass journal entries? theory, EduRev gives you an
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