State the need for treatment of Goodwill on admission of a partner. Post category:Accountancy Reading time:1 mins read SOLUTION To compensate the old partners for their sacrifice. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostGive the journal entry to distribute General Reserve and Profit and Loss Account balance appearing on the liabilities side of Balance Sheet. Next PostUnder what circumstances premium for goodwill paid by the incoming partner would never be recorded in the books of account? You Might Also Like Yogesh and Naresh were partners sharing profits equally. They dissolved the firm on 1st April, 2019. Naresh was assigned the responsibility to realise the assets and pay the liabilities at a remuneration of Rs. 10,000 including expenses. Balance Sheet of the firm as on that date was as follows: July 26, 2022 X and Y were partners in a firm sharing profits and losses in the ratio of 2 : 1. Z was admitted for 1/3rd share in the profits. On the date of Z’s admission, the Balance Sheet of X and Y showed General Reserve of Rs. 2,50,000 and a credit balance of Rs. 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Z’s admission. August 1, 2022 A limited company made Credit Sales of Rs. 4,00,000 during the financial period. If the collection period is 36 days and year is assumed to be 360 days, calculate: (i) Trade Receivables Turnover Ratio; (ii) Average Trade Receivables; (iii) Trade Receivables at the end when Trade Receivables at the end are more than that in the beginning by Rs. 6,000. August 16, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.