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Question -

Amar and Akbar are equal partners in a firm. They admitted Anthony as a new partner and the new profit sharing ratio is 4:3:2. Anthony could not bring this share of goodwill тВ╣ 45,000 in cash. It is decided to do adjustment for goodwill without opening goodwill account. Pass the necessary journal entry for the treatment of goodwill?



Answer -


Books of┬аAmar, Akbar and Anthony

Journal

┬а

Date

Particulars

L.F.

Amount

тВ╣

Amount

тВ╣

┬а

AnthonyтАЩs Capital A/c

Dr.

┬а

45,000

┬а

┬а

To┬аAmarтАЩs┬аCapital A/c

┬а

┬а

┬а

11,250

┬а

To AkbarтАЩs Capital A/c

┬а

┬а

┬а

33,750

┬а

(Adjustment of AnthonyтАЩs share of goodwill between

Amar┬аand Akbar in sacrificing ratio)

┬а

┬а

┬а

┬а

┬а

┬а

┬а

┬а

Working Notes:
1) Sacrificing Ratio = Old Ratio тИТ New Ratio
┬а
Sacrificing Ratio between Amar and Akbar = 1:3.

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