Verma and Sharma are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Ghosh as a new partner for 1/5 share of profits. Ghosh is to bring in rs. 20,000 as capital and Rs. 4,000 as his share of goodwill premium
Verma and Sharma are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Ghosh as a new partner for 1/5 share of profits. Ghosh is to bring in rs. 20,000 as capital and Rs. 4,000 as his share of goodwill premium. Give the necessary journal entries:
a) When the amount of goodwill is retained in the business.
b) When the amount of goodwill is fully withdrawn
c) When 50% of the amount of goodwill is withdrawn.
d) When goodwill is paid privately.
Anurag Pathak Answered question August 10, 2024
Solution:-
Case (d)
When goodwill is paid privately, no entry is passed in the books of the accounts.
Anurag Pathak Edited answer August 10, 2024
