# Record Necessary Journal Entries on Hina'S Admission. - Accountancy

Journal Entry

Disha and Divya are partners in a firm sharing profits in the ratio of 3 : 2 respectively. The fixed capital of Disha is ₹ 4,80,000 and of Divya is ₹ 3,00,000. On 1st April, 2019 they admitted Hina as a new partner for 1/5th share in future profits. Hina brought ₹ 3,00,000 as her capital. Calculate value of goodwill of the firm and record necessary Journal entries on Hina's admission.

#### Solution

 Journal Date Particulars L.F. Debit Amount (₹) Credit Amount (₹) 2019 April 1 Bank A/c Dr. 3,00,000 To Hina’s Capital A/c 3,00,000 (Capital brought in by Hina) April 1 Hina’s Current A/c Dr. 84,000 To Disha’s Current A/c 50,400 To Divya’s Current A/c 33,600 (Hina’s Share of Goodwill adjustedthrough current accounts)

Working Note:
Calculation of Hidden Goodwill
Total Capital of the firm on basis of Hina's Capital ( 3,00,000 x 5/1)    = 15,00,000

Less : Adjusted Capital of old partners + Incoming partners Capital    = 10,80,000

=  4,20,000

Hina's share of Goodwill : 4,20,000 x 1/5 = 84,000.

Concept: Admission of a New Partner
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#### APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 5 Admission of a Partner
Exercise | Q 48 | Page 91
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