Balances of A Band C sharing profits and losses in proportionate to their capitals, stood as...
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Balances of A Band C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 4,00,000; B Rs. 6,00,000 and C Rs. 4.00,000. A desired to retire from the firm. B and C decided to share the future profits equally, Goodwill of the entire firm be valued at Rs. 2,80,000 and no Goodwill account being raised. Journal entry for goodwill is A credit partner's capital account with old profit sharing ratio for Rs. 2,80,000 B C D credit partner's capital account with new profit sharing ratio for Rs. 2,80,000 credit A's account with Rs. 80,000 and debit B's capital account with Rs. 20,000 and C's capital account with Rs. 60,000. credit partner's capital account with gaining ratio for Rs. 2,80,000 Balances of A Band C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 4,00,000; B Rs. 6,00,000 and C Rs. 4.00,000. A desired to retire from the firm. B and C decided to share the future profits equally, Goodwill of the entire firm be valued at Rs. 2,80,000 and no Goodwill account being raised. Journal entry for goodwill is A credit partner's capital account with old profit sharing ratio for Rs. 2,80,000 B C D credit partner's capital account with new profit sharing ratio for Rs. 2,80,000 credit A's account with Rs. 80,000 and debit B's capital account with Rs. 20,000 and C's capital account with Rs. 60,000. credit partner's capital account with gaining ratio for Rs. 2,80,000
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Profit sharing ratio of AB and C is in proportion to their capital ie 400000 600000 400000 or 2 3 2 ... View the full answer
Related Book For
Mathematical Statistics with Applications in R
ISBN: 978-0124171138
2nd edition
Authors: Chris P. Tsokos, K.M. Ramachandran
Posted Date:
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