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CBSE Class 12-commerce Answered

In que no 31 of chapter 3 how we distribute 90000 goodwill among partner .why 2250 dr and cr in partners capital account
Asked by Smitakhadayate20 | 14 Dec, 2018, 08:20: PM
answered-by-expert Expert Answer
In the given question, amount of Goodwill is provided as 90.000 which is valued and distributed in the old ratio of 2:2:3:3 among the partners. However, the new ratio agreed between the partners is 1:1:1:1. Therefore, difference in the amount of Goodwill distributed in the old ratio and in the new ratio is to be determined which comes to Rs.4,500 for each partner. This Rs. 4,500 is adjusted by passing the necessary entry as:

Adjustment for Goodwill 

Suresh's Capital A/c

Dr.

  

4,500 

  

Ramesh's Capital A/c 

Dr.

  

4,500 

  

   To Mahesh's Capital A/c 

      

4,500 

   To Ganesh's Capital A/c

      

4,500 

(Gaining partners compensate sacrificing partners)
 
At the time of posting such adjustment entry in the Partners' Capital Account, this amount of Rs.4500 credited to Mahesh's Capital is contributed equally by Suresh and Ramesh as Rs. 2,250 each. The same has been recorded for other partners in similar manner by debiting and crediting respective partners with Rs 2,250 each.
Answered by | 18 Dec, 2018, 09:56: AM

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