B Com Exam > B Com Questions > Suresh and naresh are partners sharing profit...
Start Learning for Free
Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner?
Most Upvoted Answer
Suresh and naresh are partners sharing profit in the ratio 3:2 they ad...
Journal Entries for Admission of Mahesh and Recording Goodwill
Introduction:
Suresh and Naresh are partners sharing profit in the ratio 3:2. They admit Mahesh into partnership for 1/6th share in the profit who brings 18000 in cash for goodwill. The journal entries for the admission of Mahesh and recording goodwill in the following cases are discussed below.
Case 1: Mahesh gets his share from Suresh
In this case, Mahesh will get his share of profit from Suresh's share. The journal entries for the admission of Mahesh and recording goodwill are:
1. To record the admission of Mahesh and goodwill:
Cash A/c Dr. 18000
To Mahesh's Capital A/c 18000
(Goodwill amount paid by Mahesh)
2. To record the transfer of goodwill to the old partners:
Mahesh's Capital A/c Dr. 3000
To Suresh's Capital A/c 1800
To Naresh's Capital A/c 1200
(1/6th share of goodwill transferred to old partners in the ratio of 3:2)
3. To adjust the capital accounts of the old partners:
Suresh's Capital A/c Dr. 9000
To Mahesh's Capital A/c 5000
To Naresh's Capital A/c 4000
(Adjustment of capital accounts after the admission of Mahesh)
Case 2: Mahesh gets his share equally from old partners
In this case, Mahesh will get his share of profit equally from the old partners. The journal entries for the admission of Mahesh and recording goodwill are:
1. To record the admission of Mahesh and goodwill:
Cash A/c Dr. 18000
To Mahesh's Capital A/c 18000
(Goodwill amount paid by Mahesh)
2. To record the transfer of goodwill to the old partners:
Mahesh's Capital A/c Dr. 3000
To Suresh's Capital A/c 1500
To Naresh's Capital A/c 1500
(1/6th share of goodwill transferred to old partners equally)
3. To adjust the capital accounts of the old partners:
Suresh's Capital A/c Dr. 9000
To Mahesh's Capital A/c 4500
To Naresh's Capital A/c 4500
(Adjustment of capital accounts after the admission of Mahesh)
Conclusion:
The journal entries for the admission of Mahesh and recording goodwill depend on the method of sharing profits. If Mahesh gets his share from one partner, the transfer of goodwill and adjustment of capital accounts will be done accordingly. If Mahesh gets his share equally from old partners, the transfer of goodwill and adjustment of capital accounts will be done equally.
Introduction:
Suresh and Naresh are partners sharing profit in the ratio 3:2. They admit Mahesh into partnership for 1/6th share in the profit who brings 18000 in cash for goodwill. The journal entries for the admission of Mahesh and recording goodwill in the following cases are discussed below.
Case 1: Mahesh gets his share from Suresh
In this case, Mahesh will get his share of profit from Suresh's share. The journal entries for the admission of Mahesh and recording goodwill are:
1. To record the admission of Mahesh and goodwill:
Cash A/c Dr. 18000
To Mahesh's Capital A/c 18000
(Goodwill amount paid by Mahesh)
2. To record the transfer of goodwill to the old partners:
Mahesh's Capital A/c Dr. 3000
To Suresh's Capital A/c 1800
To Naresh's Capital A/c 1200
(1/6th share of goodwill transferred to old partners in the ratio of 3:2)
3. To adjust the capital accounts of the old partners:
Suresh's Capital A/c Dr. 9000
To Mahesh's Capital A/c 5000
To Naresh's Capital A/c 4000
(Adjustment of capital accounts after the admission of Mahesh)
Case 2: Mahesh gets his share equally from old partners
In this case, Mahesh will get his share of profit equally from the old partners. The journal entries for the admission of Mahesh and recording goodwill are:
1. To record the admission of Mahesh and goodwill:
Cash A/c Dr. 18000
To Mahesh's Capital A/c 18000
(Goodwill amount paid by Mahesh)
2. To record the transfer of goodwill to the old partners:
Mahesh's Capital A/c Dr. 3000
To Suresh's Capital A/c 1500
To Naresh's Capital A/c 1500
(1/6th share of goodwill transferred to old partners equally)
3. To adjust the capital accounts of the old partners:
Suresh's Capital A/c Dr. 9000
To Mahesh's Capital A/c 4500
To Naresh's Capital A/c 4500
(Adjustment of capital accounts after the admission of Mahesh)
Conclusion:
The journal entries for the admission of Mahesh and recording goodwill depend on the method of sharing profits. If Mahesh gets his share from one partner, the transfer of goodwill and adjustment of capital accounts will be done accordingly. If Mahesh gets his share equally from old partners, the transfer of goodwill and adjustment of capital accounts will be done equally.
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner?
Question Description
Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner?.
Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner?.
Solutions for Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner? defined & explained in the simplest way possible. Besides giving the explanation of
Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner?, a detailed solution for Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner? has been provided alongside types of Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner? theory, EduRev gives you an
ample number of questions to practice Suresh and naresh are partners sharing profit in the ratio 3:2 they admit mahesh into partnership for 1/6th share in the profit who bring 18000 in cash for goodwill Pass journal entries the recording goodwill in the following cases assuming that the partners withdraw the goodwill from the business (1) if mahesh get his share from suresh (2) if mahesh get his share equally fromold partner? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com 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