5 Verma and Sharma are partners in a firm sharing profits and losses in the ratio...

 

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5 Verma and Sharma are partners in a firm sharing profits and losses in the ratio of 5: 3. They admitted Ghosh as a new partner for 1/5th share of profits. Ghosh is to bring in Rs.20,000 as capital and Rs.4, 000 as his share of goodwill premium. Give the necessary Journal entries, when goodwill is paid privately. A B с D Dr. To Goodwill A/c Cash A/c 4000 Goodwill A/c Goodwill A/c Dr. 4000 To Cash A/c 4000 4000 Dr. 4000 To Verma's Caital A/c 2500 To Sharma's Capital A/c 1500 No entry is required. 5 Verma and Sharma are partners in a firm sharing profits and losses in the ratio of 5: 3. They admitted Ghosh as a new partner for 1/5th share of profits. Ghosh is to bring in Rs.20,000 as capital and Rs.4, 000 as his share of goodwill premium. Give the necessary Journal entries, when goodwill is paid privately. A B с D Dr. To Goodwill A/c Cash A/c 4000 Goodwill A/c Goodwill A/c Dr. 4000 To Cash A/c 4000 4000 Dr. 4000 To Verma's Caital A/c 2500 To Sharma's Capital A/c 1500 No entry is required.

Answer rating: 100% (QA)

C Good will A c Dr 4000 To Ver ma s Ca ital A c 2500 To Sharma s Capital A c 1500 When a n... View the full answer