1.

p , qand R are partners sharing profit equally they decided that in future R are will get one fifth share in profits on the day of change forms Goodwill is value at 300000 rupees make the necessary journal entries​

Answer»

dont spaaaaaam ok Explanation:Gaining ratio or sacrificing ration will be calculated as:Gaining/Sacrificing Ratio = New Ratio - Old RatioTherefore: For A = 1/3 - 3/6 = 2 - 3 6 = 1/6 Gaining Ratio For B = 1/3 - 2/6 = 2 - 2 6 = No Change For C = 1/3 - 1/6 = 2 - 1 6 = 1/6 Sacrificing RatioIf no Goodwill account is not opened than an adjustment entry will be passed as under: Rs.18000 * 1/6 = Rs.3000If Goodwill Account is opened, first goodwill account is created by crediting partners CAPITAL account in their old profit sharing ratios:Goodwill Account DR. 18000 To A's Capital Account 9000 To B's Capital Account 6000 To C's Capital Account 3000Than, Goodwill will be written off in the new profit sharing ratio:A's Capital Account Dr.6000B's Capital Account Dr. 6000C's Capital Account Dr. 6000 To Goodwill Account 18000please mark as brainlist



Discussion

No Comment Found

Related InterviewSolutions