P, Q & R were partners sharing profit in the ratio 4:3:3. W was admitted to the partnership, bringing 1,00,000 capital and Rs. 24,000 as his share of Goodwill. Choose the correct entry for retaining of Goodwill brought in by W. W's share in profit was 1/4th

Question

Option 1: Goodwill A/c Dr 24000 To W's capital A/c 24000

Option 2: W's capital A/c Dr 24000 To premium for Goodwill A/c 24000

Option 3: Premium for Goodwill A/c Dr 24000 To P's capital A/c 9600 To Q's Capital A/c 7200 To R's Capital A/c 7200

Option 4: Premium for Goodwill A/c Dr 24000 To P's Capital A/c 8000 To Q's Capital A/c 8000 To R's Capital A/c 8000

AfterBoards · Accepted Answer

The answer is 'Premium for Goodwill A/c Dr 24000 To P's capital A/c 9600 To Q's Capital A/c 7200 To R's Capital A/c 7200'. View full solution:

List - I	List - II
(A) Increase in Furniture Value	(I) Credit side of Partner's Capital A/c
(B) Depreciation on Machinery	(II) Debit side of Partner's Capital A/c
(C) General Reserve	(III) Credit side of Revaluation A/c
(D) Goodwill appearing in Books	(IV) Debit side of Revaluation A/c

CUET Accountancy 2022 15 July Shift 2 PYQs

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