1.

X and Y are partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2018, they admit Z as a new partner for 1/4th share in the profits. Z contributed following assets towards his capital and for his share of goodwill: Stock ₹ 60,000; Debtors ₹ 80,000; Land ₹ 1,00,000; Plant and Machinery; ₹ 40,000. On the date of admission of Z, the goodwill of the firm was valued at ₹ 6,00,000. Pass necessary journal entries in the books of the firm on Z’s admission.

Answer»

dwill = Y's Goodwill = EXPLANATION:Working NOTES:(1) Z's SHARE of Goodwill = = (2) DISTRIBUTION of Z's GoodwillX's Goodwill = = Y's Goodwill = =



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