Question

Aparna and Priya are partners who share profits and losses in the ratio of 3 : 2. Brindha joins the firm for 1/5 share of profits and brings in cash for her share of goodwill of ₹ 10,000. Pass necessary journal entry for adjusting goodwill on the assumption that the fluctuating capital method is followed and the partners withdraw the entire amount of their share of goodwill.

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Bank A/c  ...Dr.		10,000	-
	To Aparna's Capital A/c		-	6,000
	To Priya's Capital A/c		-	4,000
	(Cash brought for goodwill credited to Aparna and Priya in sacrificing ratio)
2.	Aparna's Capital A/c  ...Dr.		6,000	-
	Priya's Capital A/c  ...Dr.		4,000	-
	To Bank A/c		-	10,000
	(Amount withdrawn by the partners)