In case of admission of a partner, the new partner brings Rs. 20,000 only as his share of premium for goodwill out of Rs. 50,000. Journal entry for the adjustment of goodwill will be: Option 1: Premium for Goodwill A/c Dr. 20,000 Outgoing Partners Capital A/c Dr. 30,000 To sacrificing partners capital A/c's Cr. 50,000 Option 2: Premium for Goodwill A/c Dr. 20,000 Goodwill A/c Dr. 30,000 To sacrificing partners capital A/c's Cr. 50,000 Option 3: Premium for Goodwill A/c Dr. 20,000 Incoming partners current A/c Dr. 30,000 To sacrificing partners capital A/c's Cr. 50,000 Option 4: Premium for Goodwill A/c Dr. 20,000 Bank A/c Dr. 30,000 To sacrificing partners capital A/c's Cr. 50,000

Answer: Premium for Goodwill A/c Dr. 20,000 Incoming partners current A/c Dr. 30,000 To sacrificing partners capital A/c's Cr. 50,000. Solution: The new partner's total share of goodwill is Rs. 50,000, but he brings only Rs. 20,000 in cash. The remaining Rs. 30,000 is not paid immediately. When goodwill is partially paid: - The amount brought in cash is debited to Premium for Goodwill A/c - The unpaid portion becomes a liability of the new partner and is debited to Incoming Partner's Current A/c (to be adjusted later) - The total goodwill (both paid and unpaid portions) is credited to Sacrificing Partners' Capital A/c's in their sacrificing ratio Journal Entry:, Particulars, Debit (Rs.), Credit (Rs.), Premium for Goodwill A/c Dr., 20,000, Incoming Partner's Current A/c Dr., 30,000, To Sacrificing Partners' Capital A/c's, 50,000, (Being goodwill brought by new partner - Rs. 20,000 in cash and Rs. 30,000 to be adjusted later), The unpaid Rs. 30,000 remains recorded in the incoming partner's current account as an amount owed to the firm. This can later be adjusted against the partner's share of profits or withdrawn capital. Correct Option: 3

Partnership

Admission

Medium

common

In case of admission of a partner, the new partner brings Rs. 20,000 only as his share of premium for goodwill out of Rs. 50,000. Journal entry for the adjustment of goodwill will be:

Premium for Goodwill A/c Dr. 20,000

Outgoing Partners Capital A/c Dr. 30,000

To sacrificing partners capital A/c's Cr. 50,000

Premium for Goodwill A/c Dr. 20,000

Goodwill A/c Dr. 30,000

To sacrificing partners capital A/c's Cr. 50,000

Premium for Goodwill A/c Dr. 20,000

Incoming partners current A/c Dr. 30,000

To sacrificing partners capital A/c's Cr. 50,000

Premium for Goodwill A/c Dr. 20,000

Bank A/c Dr. 30,000

To sacrificing partners capital A/c's Cr. 50,000

✅ Correct Option: 3

The new partner's total share of goodwill is Rs. 50,000, but he brings only Rs. 20,000 in cash. The remaining Rs. 30,000 is not paid immediately.

When goodwill is partially paid:

The amount brought in cash is debited to Premium for Goodwill A/c
The unpaid portion becomes a liability of the new partner and is debited to Incoming Partner's Current A/c (to be adjusted later)
The total goodwill (both paid and unpaid portions) is credited to Sacrificing Partners' Capital A/c's in their sacrificing ratio

Journal Entry:

Particulars	Debit (Rs.)	Credit (Rs.)
Premium for Goodwill A/c Dr.	20,000
Incoming Partner's Current A/c Dr.	30,000
To Sacrificing Partners' Capital A/c's		50,000
(Being goodwill brought by new partner - Rs. 20,000 in cash and Rs. 30,000 to be adjusted later)

The unpaid Rs. 30,000 remains recorded in the incoming partner's current account as an amount owed to the firm. This can later be adjusted against the partner's share of profits or withdrawn capital.

Correct Option: 3

2025: 15 May Shift 1

Which of the following is not the main factors affecting the value of Goodwill?

2026: 20 May Shift 1

If nothing is specified as to how does the new partner acquire his share from the old partners; it may be assumed that he gets it from them:

2025: 14 May Shift 1

Which Factor does not Affect the Value of Goodwill:

2022: 15 July Shift 2

P, Q and R are partners sharing profits in the ratio of 3:1:1 S admits in the firm for $\frac{2}{10}$ share in the future. The sacrificing ratio would be

2025: 26 May Shift 2

Das and Sinha are partners in a firm sharing profits in 4:1 ratio. They admitted Pal as a new partner for 1/4th share in the profits, which he acquired wholly from Das. The new profit sharing ratio of the partners is-

2023: 20 June Shift 2

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.

In case of admission of a partner, the new partner brings Rs. 20,000 only as his share of premium for goodwill out of Rs. 50,000. Journal entry for the adjustment of goodwill will be:

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