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
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.
Related Questions
Trending Articles/News
