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Answer

Pass entries in the firm’s Journal for the following on admission of a partner: i) Machinery be reduced by ₹ 16,000 and Building be appreciated by ₹ 40,000. ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to ₹ 80,000. iii) Provisions for warranty claims be increased by ₹ 12,000. iv) Furniture (Books Value ₹ 50,000) is to be reduced by 40%. v) Furniture (Books Value ₹ 50,000) is to be reduced to 40%.

Solution:-

Anurag Pathak
May 21, 2023

Arun and Vijay are partners in a firm sharing profits & loss in the ratio of 3 : 2.

Solution:-

Anurag Pathak
May 21, 2023

Chintan and Ayush are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted Sudha as a new partner for 1/10th share in profits. Sudha brings ₹ 40,000 as premium for goodwill out of his share of ₹ 70,000. Goodwill already appears in the books at ₹ 40,000. Pass the necessary Journal entries to record this arrangement in the follow will two cases: Case – 1. When the unpaid share of goodwill is adjusted through New Partners’ Current A/c Case – 2: When goodwill is raised for the amount not brought by the new partner and is also written off.

Solution:-

Anurag Pathak
May 21, 2023

X and Y are equal partners in a firm. They admit Z into partnership and the new profit sharing ratio between X, Y and Z is 4 : 3 : 2. On Z’s admission, goodwill of the firm is valued at ₹ 36,000. Z is unable to bring his share of goodwill premium in cash. Pass necessary Journal entries for treatment of goodwill on Z’s admission by raising and writing off goodwill.

Solution:-

Anurag Pathak
May 21, 2023

Ankit and Bobby are partners sharing profits in the ratio of 2 : 1 with capital of ₹ 7,50,000 and ₹ 5,00,000. They agree to admit Kartik into partnership who brings ₹ 2,50,000 as capital and ₹ 60,000 for 1/4th share of goodwill. Goodwill already appears in the books at ₹ 45,000. Pass the necessary Journal entries by raising and writing off goodwill. Also, prepare Partner’s Capital Accounts.

Solution:-

Anurag Pathak
May 21, 2023

Asin and Shreyas are paratners in a firm. They admit Ajay as a new partner with 1/5th share in the profits of the firm. Ajay brings ₹ 5,00,000 as his share of capital. The value of total assets of the firm was ₹ 15,00,000 and outside liabilities were valued at ₹ 5,00,000. on that date. Give necessary journal entry to record goodwill at the time of Ajay’s admission. Also show your workings.

Solution:-

Anurag Pathak
May 20, 2023

X and Y are partners with capitals of ₹ 50,000 each. They admit Z as a partner for 1/4th share in the profits of the firm. Z brings in ₹ 80,000 as his share of capital. Profit and Loss Account showed a credit balance of ₹ 40,000 as on date of admission of Z. Give necessary Journal entries to record the goodwill.

Solution:-

Anurag Pathak
May 20, 2023

Bhuwan and Shivam were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were ₹ 50,000 and ₹ 75,000 respectively. They admitted Atul on 1st April, 2023 as new partner for 1/4th share in future profits. Atul brought ₹ 75,000 as his capital. Calculate the value of goodwill of the firm and record necessary Journal entries for the above transactions on Atul’s admission.

Solution:-

Anurag Pathak
May 20, 2023

Anil and Sunil are partners in a firm with fixed capitals of ₹ 3,20,000 and ₹ 2,40,000 respectively. They admitted Charu as a new partner for 1/4th share in the profits of the firm on 1st April 2012. Charu brought ₹ 3,20,000 as her share of capital. Calculate value of goodwill and record necessary Journal entries.

Solution:-

Anurag Pathak
May 20, 2023

A and B are partners in a firm with capital of ₹ 60,000 and ₹ 1,20,000 respectively. They decide to admit C into the partnership for 1/4th share in the future profits. C is to bring in a sum of ₹ 70,000 as his capital. Calculate amount of goodwill.

Solution:-

Anurag Pathak
May 20, 2023