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Janak, Chaman, and Anmol are partners sharing profits and losses in the ratio of 3 : 2 : 1. They decide to change their profit sharing ratio to 2 : 2 : 1. To give effect to this new profit sharing ratio, they decided to value goodwill at ₹ 60,000.

What will be the necessary Journal entry if goodwill does not appear in the old Balance Sheet and it is not raised and written off?

a)

Chaman’s Capital A/c Dr. ₹ 4,000
Anmol’s Capital A/c Dr. ₹ 2,000
To Janak’s Capital A/c ₹ 6,000

b)

Goodwill A/c Dr. ₹ 60,000
To Janak’s Capital A/c ₹ 30,000
To Chaman’s Capital A/c ₹ 20,000
To Anmol’s Capital A/c ₹ 10,000

c)

Janak’s Capital A/c Dr. ₹ 24,000
Chaman’s Capital A/c Dr. ₹ 24,000
Anmol’s Capital A/c Dr. ₹ 12,000
To Goodwill A/c ₹ 60,000

d)

Janak’s Capital A/c Dr. ₹ 6,000
To Chaman’s Capital A/c ₹ 4,000
To Anmol’s Capital A/c ₹ 2,000

Anurag Pathak Changed status to publish May 7, 2023
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