The Total solution for NCERT class 6-12
Journal Entries
Date
Particulars
L.F.
Debit Amount ₹
Credit Amount ₹
Cash A/c
Dr.
27,000
To Z’s Capital A/c
20,000
To Premium for Goodwill A/c
7,000
(Amount of Capital and his share of Goodwill
brought by Z)
Premium for Goodwill A/c
To X’s Capital A/c
4,000
To Y’s Capital A/c
3,000
(Premium for Goodwill credit to Old Partners in Sacrificing Ratio)
Goodwill ₹ 40,000 cannot be raised. According to AS-10 Goodwill
can be shown in the book if money and money value is paid for it.
Here no money or money value has been paid for Goodwill.