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Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.?
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Ss Journal entries to record the foUowing arrangements in the books of...
**Journal Entries for Arrangement (a)**
1. **Initial Capital Accounts**
- B's Capital Account Dr. XXXX
- C's Capital Account Dr. XXXX
- To Cash/Bank Account XXXX
2. **Profit Sharing Ratio Adjustment**
- B's Capital Account Dr. XXXX
- C's Capital Account Dr. XXXX
- To B's Current Account XXXX
- To C's Current Account XXXX
3. **Admission of D and Goodwill**
- Goodwill Account Dr. XXXX
- To B's Capital Account (1/4 share) XXXX
- To C's Capital Account (1/4 share) XXXX
- To D's Capital Account (1/2 share) XXXX
- Cash/Bank Account Dr. XXXX
- To D's Capital Account (Premium) XXXX
**Journal Entries for Arrangement (b)**
1. **Initial Capital Accounts**
- B's Capital Account Dr. XXXX
- C's Capital Account Dr. XXXX
- To Cash/Bank Account XXXX
2. **Profit Sharing Ratio Adjustment**
- B's Capital Account Dr. XXXX
- C's Capital Account Dr. XXXX
- To B's Current Account XXXX
- To C's Current Account XXXX
3. **Admission of D and Goodwill**
- Goodwill Account Dr. XXXX
- To B's Capital Account (1/6 share) XXXX
- To C's Capital Account (1/12 share) XXXX
- To D's Capital Account (1/4 share) XXXX
- Cash/Bank Account Dr. XXXX
- To D's Capital Account (Premium) XXXX
**Explanation:**
(a) In arrangement (a), B and C are partners sharing profits in the ratio of 3:2. D is admitted and pays a premium of 2,000 for 1/4th share of the profits, while the shares of B and C remain as before.
- The initial capital accounts of B and C are debited, and the cash/bank account is credited to record their respective capital contributions.
- The profit sharing ratio is adjusted by debiting B's and C's capital accounts and crediting their current accounts, ensuring that their previous profit sharing ratio is maintained.
- To account for the admission of D and the payment of goodwill, the goodwill account is debited, and B's, C's, and D's capital accounts are credited accordingly. The cash/bank account is also debited for the premium paid by D, and D's capital account is credited with the same amount.
(b) In arrangement (b), B and C are partners sharing profits in the ratio of 3:2. D is admitted and pays a premium of 2,100 for 1/4th share of profits, which he acquires 1/6th from B and 1/12th from C.
- The initial capital accounts of B and C are debited, and the cash/bank account is credited to record their respective capital contributions.
- The profit sharing ratio is adjusted by debiting B's and C's capital accounts and crediting their current accounts, maintaining the original profit sharing ratio.
- To account for
1. **Initial Capital Accounts**
- B's Capital Account Dr. XXXX
- C's Capital Account Dr. XXXX
- To Cash/Bank Account XXXX
2. **Profit Sharing Ratio Adjustment**
- B's Capital Account Dr. XXXX
- C's Capital Account Dr. XXXX
- To B's Current Account XXXX
- To C's Current Account XXXX
3. **Admission of D and Goodwill**
- Goodwill Account Dr. XXXX
- To B's Capital Account (1/4 share) XXXX
- To C's Capital Account (1/4 share) XXXX
- To D's Capital Account (1/2 share) XXXX
- Cash/Bank Account Dr. XXXX
- To D's Capital Account (Premium) XXXX
**Journal Entries for Arrangement (b)**
1. **Initial Capital Accounts**
- B's Capital Account Dr. XXXX
- C's Capital Account Dr. XXXX
- To Cash/Bank Account XXXX
2. **Profit Sharing Ratio Adjustment**
- B's Capital Account Dr. XXXX
- C's Capital Account Dr. XXXX
- To B's Current Account XXXX
- To C's Current Account XXXX
3. **Admission of D and Goodwill**
- Goodwill Account Dr. XXXX
- To B's Capital Account (1/6 share) XXXX
- To C's Capital Account (1/12 share) XXXX
- To D's Capital Account (1/4 share) XXXX
- Cash/Bank Account Dr. XXXX
- To D's Capital Account (Premium) XXXX
**Explanation:**
(a) In arrangement (a), B and C are partners sharing profits in the ratio of 3:2. D is admitted and pays a premium of 2,000 for 1/4th share of the profits, while the shares of B and C remain as before.
- The initial capital accounts of B and C are debited, and the cash/bank account is credited to record their respective capital contributions.
- The profit sharing ratio is adjusted by debiting B's and C's capital accounts and crediting their current accounts, ensuring that their previous profit sharing ratio is maintained.
- To account for the admission of D and the payment of goodwill, the goodwill account is debited, and B's, C's, and D's capital accounts are credited accordingly. The cash/bank account is also debited for the premium paid by D, and D's capital account is credited with the same amount.
(b) In arrangement (b), B and C are partners sharing profits in the ratio of 3:2. D is admitted and pays a premium of 2,100 for 1/4th share of profits, which he acquires 1/6th from B and 1/12th from C.
- The initial capital accounts of B and C are debited, and the cash/bank account is credited to record their respective capital contributions.
- The profit sharing ratio is adjusted by debiting B's and C's capital accounts and crediting their current accounts, maintaining the original profit sharing ratio.
- To account for
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Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.?
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Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.?.
Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.?.
Solutions for Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.? defined & explained in the simplest way possible. Besides giving the explanation of
Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.?, a detailed solution for Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.? has been provided alongside types of Ss Journal entries to record the foUowing arrangements in the books of the firm: "._. a) B and C are partner s sharing profits In the ratio of 3 : 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of 8 and C remain as before." "(b) B and C are partners sharing profits in the ratio of 3 : 2.D is admitted paying a premium of 't 2,100" for 1/4th share of profits which he acqulres 1/6th from B and 1/ 12th from C.? theory, EduRev gives you an
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