InterviewSolution
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Mohan Lal and Sohan Lal were partners in a firm sharing profits and losses in 3 : 2 ratio. They admitted Ram Lal for 14 share on 1.1.2003. It was agreed that goodwill of the firm will be valued at 3 years purchase of the average profits of the last 4 years which were Rs.50,000 for 2003, Rs. 60,000 for 2004, Rs. 90,000 for 2005 and Rs. 70,000 for 2006. Ram Lal did not bring his share of goodwill premium in cash. Record the necessary journal entries in the books of the firm on Ram Lal's admission when (a) Goodwill already appears in the books at Rs. 2,02,500. (b) Goodwill appears in the books at Rs.2,500. (c) Goodwill appears in the books at Rs. 2,05,000. |
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Answer» Mohan Lal and Sohan Lal were partners in a firm sharing profits and losses in 3 : 2 ratio. They admitted Ram Lal for 14 share on 1.1.2003. It was agreed that goodwill of the firm will be valued at 3 years purchase of the average profits of the last 4 years which were Rs.50,000 for 2003, Rs. 60,000 for 2004, Rs. 90,000 for 2005 and Rs. 70,000 for 2006. Ram Lal did not bring his share of goodwill premium in cash. Record the necessary journal entries in the books of the firm on Ram Lal's admission when (a) Goodwill already appears in the books at Rs. 2,02,500. (b) Goodwill appears in the books at Rs.2,500. (c) Goodwill appears in the books at Rs. 2,05,000. |
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