Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 7 views

    Cajcll A: 'Oitjtion

    Uploaded by

    khgngy5bbk
    The document discusses the admission of new partners Deepa and Erica to an existing partnership. It provides an example calculation of the new profit sharing ratios for all partners. It also provides journal entries to record the capital contributions and goodwill adjustments for the new partners.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Cajcll A: 'Oitjtion

    Uploaded by

    khgngy5bbk
    7 views1 page
    The document discusses the admission of new partners Deepa and Erica to an existing partnership. It provides an example calculation of the new profit sharing ratios for all partners. It also provides journal entries to record the capital contributions and goodwill adjustments for the new partners.

    Original Description:

    F

    Original Title

    kk

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses the admission of new partners Deepa and Erica to an existing partnership. It provides an example calculation of the new profit sharing ratios for all partners. It also provides journal entries to record the capital contributions and goodwill adjustments for the new partners.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views1 page

    Cajcll A: 'Oitjtion

    Uploaded by

    khgngy5bbk
    The document discusses the admission of new partners Deepa and Erica to an existing partnership. It provides an example calculation of the new profit sharing ratios for all partners. It also provides journal entries to record the capital contributions and goodwill adjustments for the new partners.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    ___ 3.

    35
    oN0F APAR~~ _ _ _ _ _ _ _ _ _ _ _ _ _ -- -- -
    AD
    --
    .,,,,.
    -
    ----- -~ -- -- -- ~

    'oitJTION:
    S •00 of New Profit Sharing Ratio
    :
    1
    caJcll a Shafe
    0
    = Old Share - Sacrifice Share
    ! !_ ! each
    sacrifice of C and D 2x3- 6
    -
    1
    A's New Share 4
    1
    B's New Share 4
    1 1 3-2 1
    C's New Share - 4 - 6 - 12 - 12
    1 1 3-2 1
    D's New Share - 4 - 6 = 12 - 12
    1 1-·1-·•-· 1 -I 3:3 :1: 1:4
    = -· • 12 •3
    New ratio of A, B, C, D &E 4 • 4 • 12
    Books of A, B, C, D and E
    (b) JOURNAL
    Parti~ars . I
    Dr. 1,00,000 j
    E's Current Ale 50,000,
    To C's Capital Ale
    j

    50,0001
    To D's Capital Ale f
    (Goodwill adjustment on E's admission)
    J

    JLLUSTRA TION 37.


    profits and losses in the ratio of
    Benu and Leena are partners in a firm sharing
    partners.
    5 : 3. They admit Deepa and Erica as two new
    : 2 : 2 : 3.
    The new profit sharing ratio is decided to be 3
    as capital.
    Both the new partners introduce f 1,00,000 each
    of goodwill but Erica is unable to
    Deepa pays f 40,000 in cash for her share
    ll.
    contribute any amount for her share of goodwi
    n, the firm had an Advertisement
    At the time of Deepa's and Erica's admissio
    off.
    Suspense Account off 56,000 which is written
    ies to record the above adjustments
    You are required to pass necessary journal entr (LS. C. 2023)
    at the time of admission of Deepa and Erica.
    ''

    SOLUTION: JOURNAL
    . Particulars :.•. • 'LF. f Dr. (

    Bank Ale Dr. 2,40,000 I


    1,00,000I'
    To Deepa's Capital Ale
    . .1~00,0001
    To Erica's Capital Ale I • '
    40,000,
    To Premium for Goodwill Ale
    ! (Capital contributed by Deepa & Erica and Dee
    pa 1
    r cont
    .. _ _ ribut
    _ ing_her_shar
    _ of _ _ _ _ _ •_ __J
    good
    e ___.::, will) _
    c.._.

    You might also like