29 :- Ram and Mohan are partners in a firm sharing profits in the ratio of 3 : 2. on 1st April,2024 they admit Sohan as a partner for 1/4th share in the profits. Sohan contributed following assets towards his capital and for his share of goodwill.
Stock Rs 60,000; Debtors Rs 80,000; Land Rs 100,000; Plant and Machinery Rs 40,000.
On the date of admission of Sohan, the goodwill of the firm was valued at Rs 6,00,000
Pass necessary journal entries in the books of the firm on Sohan’s admission if
(i) Partners do not withdraw the share of goodwill
(ii) Partners withdraw half of their share of goodwill
Solution :-
Calculation of treatment of goodwill
Sohan’s premium of goodwill = 6,00,000 x 1/4 = Rs 1,50,000
Sacrificing ratio of Ram and Mohan is 3:2
Ram’s share in premium of goodwill = 1,50,000 x 3/5 = Rs 90,000
Mohan’s share in premium of goodwill = 1,50,000 x 2/5 = Rs 60,000
