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X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above?
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X and Y are partners sharing profits in the ratio of 3:1. Z is admitte...
Journal Entries for Admission of Z as a Partner
1. Entry for Z's Investment in Goodwill:
Goodwill A/c Dr. ₹30,000
Z's Capital A/c Cr. ₹30,000
(To record Z's payment for goodwill)
2. Entry for Z's Capital Contribution:
Z's Capital A/c Dr. ₹30,000
Cash A/c Cr. ₹30,000
(To record Z's investment in the business)
3. Adjustment Entry for Revaluation of Assets and Liabilities:
Asset/Liability A/c Dr./Cr.
X's Capital A/c Cr. (3/4)
Y's Capital A/c Cr. (1/4)
Z's Capital A/c Cr. (1/3)
(To adjust the capital accounts as per the new profit-sharing ratio)
4. Entry for Sharing Future Profits Equally:
X's Capital A/c Dr.
Y's Capital A/c Dr.
Z's Capital A/c Dr.
Profit and Loss Appropriation A/c Cr.
(To distribute future profits equally among X, Y, and Z)
These journal entries ensure that Z's admission as a partner, payment for goodwill, capital contribution, and adjustment of profit-sharing ratios are accurately recorded in the books of accounts.
1. Entry for Z's Investment in Goodwill:
Goodwill A/c Dr. ₹30,000
Z's Capital A/c Cr. ₹30,000
(To record Z's payment for goodwill)
2. Entry for Z's Capital Contribution:
Z's Capital A/c Dr. ₹30,000
Cash A/c Cr. ₹30,000
(To record Z's investment in the business)
3. Adjustment Entry for Revaluation of Assets and Liabilities:
Asset/Liability A/c Dr./Cr.
X's Capital A/c Cr. (3/4)
Y's Capital A/c Cr. (1/4)
Z's Capital A/c Cr. (1/3)
(To adjust the capital accounts as per the new profit-sharing ratio)
4. Entry for Sharing Future Profits Equally:
X's Capital A/c Dr.
Y's Capital A/c Dr.
Z's Capital A/c Dr.
Profit and Loss Appropriation A/c Cr.
(To distribute future profits equally among X, Y, and Z)
These journal entries ensure that Z's admission as a partner, payment for goodwill, capital contribution, and adjustment of profit-sharing ratios are accurately recorded in the books of accounts.
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X and Y are partners sharing profits in the ratio of 3:1. Z is admitte...
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X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above?
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X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above?.
X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above?.
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X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above?, a detailed solution for X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above? has been provided alongside types of X and Y are partners sharing profits in the ratio of 3:1. Z is admitted as a partner for which he pays ₹30000 for goodwill in the cash.X, Y and Z decided to share future profits in equal proportion. You are required to pass necessary journal entries to give effect to the above? theory, EduRev gives you an
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