Practicing Success
Practicing Success
CUET Preparation Today
In a partnership firm, A B, and C are partners sharing profits and losses in the ratio of 3:2:1. Their capitals were of Rs 1,00,000, 2,00,000 and 50,000 respectively. On August 2nd, 2021, B died. A and C decided to give the share of B to his executive on 5th August. Sales and profits for the previous year were Rs 5,00,000 and Rs 3,00,000 respectively, whereas the sale of the firm till the date of B's death was Rs 3,00,000. Goodwill of the firm was revalued at Rs 2,40,000. The firm follows the financial accounting year. |
Journal Entry entry for B's share of premium for Goodwill would be - |
A's capital a/c dr - 60,000 C's capital a/c dr - 20,000 To B's Capital a/c - 80,000 B's Capital a/c - 80,000 To A's capital a/c - 60,000 To C's capital a/c - 20,000 B's Capital a/c Dr. 80,000 To A's capital a/c 40,000 To C's capital a/c 40,000 A's capital a/c dr - 40,000 C's capital a/c dr - 40,000 To B's Capital a/c - 80,000 |
A's capital a/c dr - 60,000 C's capital a/c dr - 20,000 To B's Capital a/c - 80,000 |
Premium for Goodwill- 2,40,000 * 2/6 = 80,000 A will give - 80,000 * 3/4 = 60,000 C will give - 80,000 * 1/4 = 20,000 |
