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A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.?
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A and B are partners in a firm sharing profits in the ratio of 5:3 on ...
Journal Entries:
1. On C's admission:
- C's Capital A/c Dr. Rs18,000
- C's Premium A/c Dr. Rs6,000
- A's Capital A/c Cr. Rs10,000
- B's Capital A/c Cr. Rs8,000
- To Goodwill A/c Rs6,000
- To C's Capital A/c Rs18,000
- (Being C's capital and premium introduced, and goodwill adjusted in old partners' capital accounts)
2. Adjustment of Goodwill:
- Goodwill A/c Dr. Rs6,000
- To A's Capital A/c Rs3,600
- To B's Capital A/c Rs2,400
- (Being the goodwill written off in old partners' capital accounts)
3. Adjustment of Capitals:
- A's Capital A/c Dr. Rs3,600
- B's Capital A/c Dr. Rs2,400
- To C's Capital A/c Cr. Rs6,000
- (Being the capital adjusted after admission of C and goodwill adjustment)
Ledger Accounts:
1. C's Capital A/c:
Date | Particulars | Amount (Dr) | Amount (Cr)
-------------------------------------------------------------------------------------
1/04/2006 | To Cash (Capital) | - | 18,000
1/04/2006 | To Cash (Premium) | - | 6,000
1/04/2006 | By A's Capital | 10,000 | -
1/04/2006 | By B's Capital | 8,000 | -
1/04/2006 | By Goodwill Adjustment | 6,000 | -
-------------------------------------------------------------------------------------
Total | 18,000 | 18,000
2. C's Premium A/c:
Date | Particulars | Amount (Dr) | Amount (Cr)
-------------------------------------------------------------------------------------
1/04/2006 | To Cash (Premium) | - | 6,000
-------------------------------------------------------------------------------------
Total | 6,000 | 6,000
3. Goodwill A/c:
Date | Particulars | Amount (Dr) | Amount (Cr)
-------------------------------------------------------------------------------------
1/04/2006 | To A's Capital (Adjustment) | 3,600 | -
1/04/2006 | To B's Capital (Adjustment) | 2,400 | -
1/04/2006 | By C's Capital (Adjustment) | - | 6,000
-------------------------------------------------------------------------------------
Total | 6,000 | 6,000
4. A's Capital A/c:
Date | Particulars | Amount (Dr) | Amount (Cr)
-------------------------------------------------------------------------------------
1/04/2006 | By C's Capital (Adjustment) | 3,600 | -
1/04/2006 | By Goodwill
1. On C's admission:
- C's Capital A/c Dr. Rs18,000
- C's Premium A/c Dr. Rs6,000
- A's Capital A/c Cr. Rs10,000
- B's Capital A/c Cr. Rs8,000
- To Goodwill A/c Rs6,000
- To C's Capital A/c Rs18,000
- (Being C's capital and premium introduced, and goodwill adjusted in old partners' capital accounts)
2. Adjustment of Goodwill:
- Goodwill A/c Dr. Rs6,000
- To A's Capital A/c Rs3,600
- To B's Capital A/c Rs2,400
- (Being the goodwill written off in old partners' capital accounts)
3. Adjustment of Capitals:
- A's Capital A/c Dr. Rs3,600
- B's Capital A/c Dr. Rs2,400
- To C's Capital A/c Cr. Rs6,000
- (Being the capital adjusted after admission of C and goodwill adjustment)
Ledger Accounts:
1. C's Capital A/c:
Date | Particulars | Amount (Dr) | Amount (Cr)
-------------------------------------------------------------------------------------
1/04/2006 | To Cash (Capital) | - | 18,000
1/04/2006 | To Cash (Premium) | - | 6,000
1/04/2006 | By A's Capital | 10,000 | -
1/04/2006 | By B's Capital | 8,000 | -
1/04/2006 | By Goodwill Adjustment | 6,000 | -
-------------------------------------------------------------------------------------
Total | 18,000 | 18,000
2. C's Premium A/c:
Date | Particulars | Amount (Dr) | Amount (Cr)
-------------------------------------------------------------------------------------
1/04/2006 | To Cash (Premium) | - | 6,000
-------------------------------------------------------------------------------------
Total | 6,000 | 6,000
3. Goodwill A/c:
Date | Particulars | Amount (Dr) | Amount (Cr)
-------------------------------------------------------------------------------------
1/04/2006 | To A's Capital (Adjustment) | 3,600 | -
1/04/2006 | To B's Capital (Adjustment) | 2,400 | -
1/04/2006 | By C's Capital (Adjustment) | - | 6,000
-------------------------------------------------------------------------------------
Total | 6,000 | 6,000
4. A's Capital A/c:
Date | Particulars | Amount (Dr) | Amount (Cr)
-------------------------------------------------------------------------------------
1/04/2006 | By C's Capital (Adjustment) | 3,600 | -
1/04/2006 | By Goodwill
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A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.?
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A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.? 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 partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.?.
A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.? 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 partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.?.
Solutions for A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.? in English & in Hindi are available as part of our courses for Commerce.
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A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.?, a detailed solution for A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.? has been provided alongside types of A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.? theory, EduRev gives you an
ample number of questions to practice A and B are partners in a firm sharing profits in the ratio of 5:3 on 1/04/2006 their capitals were Rs25000 and Rs20000 respectively. On that date they admitted C as a new partner for 1/5th share in the profit. C brought in Rs18000 as capital and Rs6000 for his 1/5th share in the future profit as premium for goodwill. Old partners agreed to share profit in future in the ratio of 3:2. Pass necessary journal entries in the books of firm on C's admission and show necessary ledger account.? tests, examples and also practice Commerce tests.
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