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X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.?
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X and Y share profit and losses in the ratio of 5:3. Z is admitted for...
Adjustment of Goodwill and Distribution of Profit
Journal Entry for Adjustment of Goodwill:
*Goodwill A/c Dr. 7,560
To X’s Capital A/c 4,410
To Y’s Capital A/c 3,150
Explanation:
Z is admitted for 3/10th share of profits, which is equal to 7,200 (3/10 x 24,000). As the goodwill of the firm is valued at ₹21, 600, Z’s share of goodwill is 7,560 (7,200/24,000 x 21,600). Hence, the goodwill account is debited with 7,560, and X and Y’s capital accounts are credited in the ratio of 5:3.
Journal Entry for Distribution of Profit:
*X’s Capital A/c Dr. 12,870
Y’s Capital A/c Dr. 7,710
To Profit and Loss A/c 20,580
Explanation:
The profit for the year is ₹24,000, and Z’s share of profit is 7,200. Hence, the remaining profit of 16,800 (24,000 - 7,200) is to be distributed between X and Y in the ratio of 5:3. X’s capital account is debited with 12,870 (16,800 x 5/8), and Y’s capital account is debited with 7,710 (16,800 x 3/8). Profit and Loss account is credited with the total amount of 20,580 (12,870 + 7,710).
Conclusion:
The above journal entries adjust the goodwill and distribute the profit among X, Y, and Z. It is essential to adjust the goodwill whenever a new partner is admitted, as it reflects the value of the firm's reputation. The distribution of profit is based on the profit sharing ratio agreed upon by the partners.
Journal Entry for Adjustment of Goodwill:
*Goodwill A/c Dr. 7,560
To X’s Capital A/c 4,410
To Y’s Capital A/c 3,150
Explanation:
Z is admitted for 3/10th share of profits, which is equal to 7,200 (3/10 x 24,000). As the goodwill of the firm is valued at ₹21, 600, Z’s share of goodwill is 7,560 (7,200/24,000 x 21,600). Hence, the goodwill account is debited with 7,560, and X and Y’s capital accounts are credited in the ratio of 5:3.
Journal Entry for Distribution of Profit:
*X’s Capital A/c Dr. 12,870
Y’s Capital A/c Dr. 7,710
To Profit and Loss A/c 20,580
Explanation:
The profit for the year is ₹24,000, and Z’s share of profit is 7,200. Hence, the remaining profit of 16,800 (24,000 - 7,200) is to be distributed between X and Y in the ratio of 5:3. X’s capital account is debited with 12,870 (16,800 x 5/8), and Y’s capital account is debited with 7,710 (16,800 x 3/8). Profit and Loss account is credited with the total amount of 20,580 (12,870 + 7,710).
Conclusion:
The above journal entries adjust the goodwill and distribute the profit among X, Y, and Z. It is essential to adjust the goodwill whenever a new partner is admitted, as it reflects the value of the firm's reputation. The distribution of profit is based on the profit sharing ratio agreed upon by the partners.
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X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.?
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X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.?.
X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.?.
Solutions for X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.? in English & in Hindi are available as part of our courses for Class 12.
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Here you can find the meaning of X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.? defined & explained in the simplest way possible. Besides giving the explanation of
X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.?, a detailed solution for X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.? has been provided alongside types of X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.? theory, EduRev gives you an
ample number of questions to practice X and Y share profit and losses in the ratio of 5:3. Z is admitted for 3/10th share of profits taken by Z equally from X snd Y. The goodwill of the firm is valued at ₹21, 600.Z brings in his requisite share of goodwill. The profit for the year of new firm amount to ₹ 24000, pass necessary journal entries to adjust goodwill and distrube profit.? tests, examples and also practice Class 12 tests.
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