x and y are partner with the capital of 13 lakh and 20 lakh De share p

1.	x and y are partner with the capital of 13 lakh and 20 lakh De share profit and losses in the ratio of 1 ratio 2 and add z as new partner with 1/5 share
Answer» Answer: Explanation: Calculation of HIDDEN goodwill: Total Capital of the firm after admission= 50000+50000+80000+40000 = 220000 Total capital of the firm BASED on Z's capital= 80000 * 4/1 = 320000 Hidden goodwill= 320000-220000= 100000 Z's share of Goodwill= 100000 * 1/4= 25000 JOURNAL 1. Cash a/c..... DR. 80000 To Z's Capital a/c 80000 (Being capital brought in by Z) 2. Z's Capital a/c... Dr. 25000 To X's Capital a/c 12500 To Y's Capital a/c 12500 (Being Z's share of goodwill distributed among the partners in the ratio of 1:1)

x and y are partner with the capital of 13 lakh and 20 lakh De share profit and losses in the ratio of 1 ratio 2 and add z as new partner with 1/5 share

Answer»

Answer:

Explanation:

Calculation of HIDDEN goodwill:

Total Capital of the firm after admission= 50000+50000+80000+40000

= 220000

Total capital of the firm BASED on Z's capital= 80000 * 4/1

= 320000

Hidden goodwill= 320000-220000= 100000

Z's share of Goodwill= 100000 * 1/4= 25000

JOURNAL

1. Cash a/c..... DR. 80000

To Z's Capital a/c 80000

(Being capital brought in by Z)

2. Z's Capital a/c... Dr. 25000

To X's Capital a/c 12500

To Y's Capital a/c 12500

(Being Z's share of goodwill distributed among the partners in the ratio of 1:1)

Discussion

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