Vikas and Rahul are partners who shared profits in the ratio of 2:3. They admitted Sunil as a partner for 3/7 th share in future profits who brings Rs.37,500 as his share of Goodwill. Half of which is withdrawn by sacrificing partners. Record Journal entry for Goodwill withdrawn by Partners. Option 1: Premium for Goodwill A/c Dr 37,500 To Vikas's Capital A/c 15,000 To Rahul's Capital A/c 22,500 Option 2: Vikas's Capital A/c Dr 7,500 Rahul's Capital A/c Dr 11,250 To Bank A/c 18,750 Option 3: Bank A/c Dr 18,750 To Vikas's Capital A/c 7,500 To Rahul's Capital A/c 11,250 Option 4: Vikas's capital A/c Dr 15,000 Rahul's Capital A/c Dr 22,500 To Bank 37,500

Answer: Vikas's Capital A/c Dr 7,500 Rahul's Capital A/c Dr 11,250 To Bank A/c 18,750. Solution: Sacrificing ratio of Vikas and Rahul is same as old ratio 2:3. Goodwill credited to capital: Vikas 2/5x 37,500=15,000, Rahul 3/5x 37,500=22,500. Half is withdrawn: Vikas 7,500, Rahul 11,250. Entry for withdrawal: Vikas's Capital Dr 7,500; Rahul's Capital Dr 11,250; To Bank 18,750.

Partnership

Admission

Medium

Vikas and Rahul are partners who shared profits in the ratio of 2:3. They admitted Sunil as a partner for $\frac{3}{7}$ th share in future profits who brings Rs.37,500 as his share of Goodwill. Half of which is withdrawn by sacrificing partners. Record Journal entry for Goodwill withdrawn by Partners.

Premium for Goodwill A/c Dr 37,500

To Vikas's Capital A/c 15,000

To Rahul's Capital A/c 22,500

Vikas's Capital A/c Dr 7,500

Rahul's Capital A/c Dr 11,250

To Bank A/c 18,750

Bank A/c Dr 18,750

To Vikas's Capital A/c 7,500

To Rahul's Capital A/c 11,250

Vikas's capital A/c Dr 15,000

Rahul's Capital A/c Dr 22,500

To Bank 37,500

✅ Correct Option: 2

Sacrificing ratio of Vikas and Rahul is same as old ratio 2:3. Goodwill credited to capital: Vikas $\frac{2}{5}\times 37{,}500=15{,}000$ , Rahul $\frac{3}{5}\times 37{,}500=22{,}500$ . Half is withdrawn: Vikas 7,500, Rahul 11,250. Entry for withdrawal: Vikas's Capital Dr 7,500; Rahul's Capital Dr 11,250; To Bank 18,750.

2025: 15 May Shift 1

The steps involved in calculation of Goodwill under Super Profit method are:

(A) Calculate the super profits by deducting normal profit from the average profits.

(B) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.

(D) Calculate goodwill by multiplying the super profits by the given number of years' purchase.

Choose the correct sequence of steps from the options given below:

2026: 24 May Shift 1

Vandana and Megha are partners sharing profits in the ratio of 4:3. They admit Gurisha as a new partner for 1/10th share in the future profits of the firm which she gets equally from Vandana and Megha. Calculate new profit sharing ratio of Vandana, Megha and Gurisha.

2025: 27 May Shift 1

On the admission of a new partner increase in the value of assets is debited to:

2026: 21 May Shift 1

Rajni and Ravi are partners in a firm sharing profits in the ratio of 4:1. On April 15, 2025 they admit Meera as a new partner. On that date, there was a balance of Rs. 20,000 in the General Reserve and a credit balance of Rs. 30,000 in the Profit And Loss Account of the Firm. Necessary Journal Entry for this would be:

2026: 24 May Shift 1

Sunila and Manisha are partners in a firm sharing profits and losses in the ratio of 5:3. Radhika is admitted in the firm for 1/5th share of profits. She brings in Rs. 40,000 as her share of goodwill. Give the necessary journal entries, when partners decided to retain goodwill in the business.

2026: 11 May Shift 2

For the right to acquire share in the assets and profits of the partnership firm, the new partner brings:

Solution

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