Sharan and Angad are partners in a firm sharing profits and losses in the ratio of 3:2. On 1st April, 2022, they admit Akhil as a partner for 1/5 share in the profits. Akhil acquires 1/5 of his share from Sharan and the balance from Angad. On the date of Akhil’s admission, the goodwill of the firm was valued at ₹ 90,000. Akhil contributed the following assets towards his capital and his share of goodwill.
You are required to:
(i) Calculate the sacrificing ratio of the partners (ii) Pass the necessary journal entries on Akhil’s admission, ascertaining Akhil’s capital contribution and assuming that he brings into the firm his share of goodwill in cash/ kind.
OR
Amit and Pavan are partners in a firm with capitals of ₹ 35,000 each. They shared profits and losses in the ratio of 3:1. On 1st April, 2023, they admit Charu as a new partner for 1/5 share in the profits. Charu brings in ₹ 40,000 as her share of capital. Goodwill of the firm is based on Charu’s share in the profits and the capital contributed by her. Charu brings her share of goodwill in cash. At the time of Charu’s admission:
(a) The firm had a General Reserve of ₹ 60,000 from which ₹ 20,000 is to be set aside as provision for doubtful debts. (b) Creditors of ₹ 8,000 are paid by Amit privately for which he is not to be reimbursed. (c) There is no change in the value of other assets and liabilities. You are required to pass necessary journal entries on Charu’s admission.
,
,
,
,
,