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Question : X and Y are partners in a firm sharing profit in the ratio of 4:3. On 1st April 2016, they admitted Z as a new partner. Z brought Rs 1,00,000 for his capital and Rs 21,000 for 1/3rd share of goodwill premium. On Z's admission goodwill appeared in the books of the firm at Rs 14,000. Record necessary Journal entries on Z's admission.

Option 1: Debiting A capital account with Rs 8000 and B's capital account with Rs 6000, crediting goodwill account with Rs 14,000.

Option 2: Debiting bank account Rs 1,21,000 and crediting c's capital account with Rs 1,21,000

Option 3: Debiting premium for goodwill account Rs 21,000 and crediting A's capital account with Rs 12,000 and with Rs 9,000

Option 4: All of the above


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: All of the above


Solution : Answer = All of the above

(old ratio = 4:3)

X's Capital A/c Dr 8000 (14,000 x 4/7)

Y's Capital A/c Dr 6000

To Goodwill - 14000

Bank A/c Dr 1,21,000

Z's Capital A/c 1,21,000

Z's Capital A/c Dr 21000

X's Capital A/c 12000 ( 21000 x 4/7)

Y's Capital A/c 9000
(S. Ratio = 4:3)

Hence, the correct option is 4.

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