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A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary journal entries?
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A and B are partner in a firm sharing profit in the ratio of 3:2 . The...
Journal Entries for Admission of C as a New Partner:
1. Entry for C's Capital Contribution:
- C's Capital A/c Dr 75,000
To Cash/Bank A/c 75,000
2. Entry for Goodwill Share Paid by C:
- Goodwill A/c Dr 25,000
To C's Capital A/c 25,000
3. Adjustment Entry for Existing Partners A and B:
- A's Capital A/c Dr x
B's Capital A/c Dr y
To Goodwill A/c (Total Goodwill Amount)
Explanation:
- In the first entry, C brings in Rs 75,000 as capital, so the entry shows an increase in C's Capital account and a decrease in Cash/Bank account.
- In the second entry, as C is paying Rs 25,000 for the share of goodwill, the entry records an increase in the Goodwill account and a decrease in C's Capital account.
- In the third entry, an adjustment is made to the Capital accounts of existing partners A and B. The total amount of Goodwill paid by C is debited to the Capital accounts of A and B in their profit-sharing ratio to adjust for the introduction of C as a new partner.
These entries ensure the proper accounting treatment for the admission of a new partner and the adjustment of capital accounts in a partnership firm.
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A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary journal entries?
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A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary 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 A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary journal entries? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary journal entries?.
A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary 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 A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary journal entries? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary journal entries?.
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A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary journal entries?, a detailed solution for A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary journal entries? has been provided alongside types of A and B are partner in a firm sharing profit in the ratio of 3:2 . They admitted C as a new partner. The new profit sharing ratio A, B and C will be 5:3:2. C being rs 75000 as capital rs 25000 for the share of goodwill. Pass necessary journal entries? theory, EduRev gives you an
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