CBSE 2025, Set 2

Question

A and B were partners in a firm sharing profits and losses in the ratio of 3:2. On 1st April, 2024, they admitted C as a new partner for 1/4th share in the profits. C brought ₹ 1,00,000 as his capital and ₹ 50,000 as his share of premium for goodwill in cash. At the time of C's admission, goodwill was appearing in the books of the firm at ₹ 40,000.

Pass the necessary journal entries in the books of the firm on C's admission.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of A, B and C - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | 2024 Apr 1 | A's Capital A/c ...Dr. B's Capital A/c ...Dr.     To Goodwill A/c (Existing goodwill written off in old ratio 3:2) | | 24,000 16,000 | 40,000 | | Apr 1 | Bank A/c ...Dr.     To C's Capital A/c     To Premium for Goodwill A/c (Amount of capital and premium for goodwill brought in cash by C) | | 1,50,000 | 1,00,000 50,000 | | Apr 1 | Premium for Goodwill A/c ...Dr.     To A's Capital A/c     To B's Capital A/c (Premium for goodwill distributed between A and B in their sacrificing ratio 3:2) | | 50,000 | 30,000 20,000 |

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Accountancy > Accounting For Partnership Firms > Admission Of A Partner

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