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Question
Disha and Divya are partners in a firm sharing profits in the ratio of 3 : 2 respectively. The fixed capital of Disha is ₹ 4,80,000 and of Divya is ₹ 3,00,000. On 1st April, 2019 they admitted Hina as a new partner for 1/5th share in future profits. Hina brought ₹ 3,00,000 as her capital. Calculate value of goodwill of the firm and record necessary Journal entries on Hina's admission.
Solution
| Journal | |||||
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
|
2019 April 1 |
|
|
|
|
|
|
|
To Hina’s Capital A/c |
|
|
|
3,00,000 |
|
|
(Capital brought in by Hina) |
|
|
|
|
|
April 1 |
Hina’s Current A/c |
Dr. |
|
84,000 |
|
|
|
To Disha’s Current A/c |
|
|
|
50,400 |
|
|
To Divya’s Current A/c |
|
|
|
33,600 |
|
|
(Hina’s Share of Goodwill adjusted |
|
|
|
|
Working Note:
Calculation of Hidden Goodwill
Total Capital of the firm on basis of Hina's Capital ( 3,00,000 x `5/1`) = 15,00,000
Less : Adjusted Capital of old partners + Incoming partners Capital = 10,80,000
= 4,20,000
Hina's share of Goodwill : 4,20,000 x `1/5` = 84,000.
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|
Liabilites |
Amount (Rs) |
Assets |
Amount (Rs) |
||
|
Creditors |
|
9,000 |
Land and Buildings |
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|
|
Bills Payable |
|
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|
Capital Accounts |
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|
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|
|
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|
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|
|
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|
Cash |
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|
|
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|
|
|
|
|
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|
55,000 |
|
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Pick the odd one out:
