Partnership

Admission

Easy

Amrita and Kalyani are partners sharing profits in the ratio of 3 : 2. They decided to expand the business by admitting Suraj as new partner for 1/4th share. Suraj's share of goodwill is valued at Rs. 90,000 for which he compensated Amrita and Kalyani in the ratio 1 : 4. Following information is also provided :

Particulars	Book Value (Rs.)	Revalued figure (Rs.)
Machinery	25,00,000	27,00,000
Land	10,00,000	50,00,000
Computers	2,50,000	50,000
Workmen Compensation Fund	5,00,000

Claim against workmen compensation is Rs. 2,00,000 and goodwill appeared in the books at Rs. 60,000

What journal entry will be passed for goodwill appearing in the books ?

Dr. Goodwill A/c Rs. 60,000

Cr. Amrita's Capital A/c Rs. 36,000

Cr. Kalyani's Capital A/c Rs. 24,000

Dr. Amrita's Capital A/c Rs. 36,000

Dr. Kalyani's Capital A/c Rs. 24,000

Cr. Goodwill A/c Rs. 60,000

Dr. Amrita's Capital A/c Rs. 12,000

Dr. Kalyani's Capital A/c Rs. 48,000

Cr. Goodwill A/c Rs. 60,000

Dr. Goodwill A/c Rs. 60,000

Cr. All partner's Capital A/c Rs. 60,000

✅ Correct Option: 2

Existing goodwill of Rs. 60,000 must be written off among old partners in old PSR (3:2).

Amrita's share = 60,000 x 3/5 = 36,000 (debited).

Kalyani's share = 60,000 x 2/5 = 24,000 (debited).

Entry: Amrita's Capital A/c Dr. 36,000; Kalyani's Capital A/c Dr. 24,000; To Goodwill A/c 60,000.

Question 41

Goodwill brought by Suraj will be distributed as :

Question 42

Share of revaluation profit of Amrita and Kalyani is :

Question 43

What is Amrita's share in workmen compensation fund ?

Question 45

A new partner can be admitted :

What journal entry will be passed for goodwill appearing in the books ?

Solution

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