Following figures have been extracted from the books of X and Y who share profit and losses in the ratio of 7 : 3.
Q. 69. Following figures have been extracted from the books of X and Y who share profit and losses in the ratio of 7 : 3.
On this date, they admit Z for 1/5th share and the new profit sharing ratio is agreed at 3 : 1 : 1. Z brings in ₹ 3,00,000 as his Capital. Pass Journal entry for recording goodwill.
[Ans. Hidden Goodwill ₹ 5,60,000; Z’s Current A/c will be debited by ₹ 1,12,000 and X and Y’s Capital A/cs will be credited by ₹ 56,000 each. Sacrificing Ratio 1 : 1.]
| X’ Capital | 3,00,000 |
| Y’s Capital | 1,50,000 |
| Reserve | 1,60,000 |
| Profit & Loss Account | 40,000 |
| Advertisement Expenditure | 10,000 |
Anurag Pathak Answered question September 1, 2024
