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Question
Mohit and Govind were partners in a firm with a ratio of 1:2. They admitted Ravi for 1/5th share in profits. He brought ₹2,50,000 for capital but could not bring goodwill. The goodwill of the firm was valued at ₹3,00,000. What Journal Entry will be passed for the treatment of goodwill?
Options
Asset A/c Dr. 60,000 To Ravi's Capital A/c 60,000 Cash A/c Dr. 60,000 To Goodwill A/c 60,000 Mohit's Capital A/c Dr. 20,000 Govind's Capital A/c Dr. 40,000 To Ravi's Capital A/c 60,000 Ravi's Capital A/c Dr. 60,000 To Mohit's Capital A/c 20,000 To Govind's Capital A/c 40,000
MCQ
Solution
Ravi's Capital A/c | Dr. 60,000 |
To Mohit's Capital A/c | 20,000 |
To Govind's Capital A/c | 40,000 |
Explanation:
Ravi's goodwill share will be divided among the sacrificing partners according to the sacrificing ratio.
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