Under what circumstances premium for Goodwill paid by the incoming partner is not recorded in the books of account? (Delhi 2014 C) Post category:Accountancy Reading time:1 mins read SOLUTION Premium for Goodwill is not recorded in the books of account when the incoming partner pays it privately to the sacrificing partners. Please Share This Share this content Opens in a new window X Opens in a new window Facebook 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 PostWhat is meant by ‘Hidden Goodwill’? (AI 2017 C) Next PostVinay and Naman are partners sharing profits in the ratio of 4: 1. Their capitals were Rs. 90,000 and Rs. 70,000 respectively. They admitted Prateek for 1 / 3 share in the profits. Prateek brought Rs. 1,00,000 as his capital. Calculate the value of firm’s goodwill. (CBSE 2018, 2018 C) You Might Also Like Amit, Binita and Charu are three partners. On 1st April, 2018, their Capitals stood as: Amit Rs. 1,00,000, Binita Rs. 2,00,000 and Charu Rs. 3,00,000. It was decided that: (a) they would receive interest on Capital @ 5% p.a., (b) Amit would get a salary of Rs. 10,000 per month, (c) Binita would receive commission @ 5% of net profit after deduction of commission, and (d) 10% of the net profit would be transferred to the General Reserve. Before the above items were taken into account, the profit for the year ended 31st March, 2019 was Rs. 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners. July 21, 2022 A, B and C were partners sharing profits in the ratio of 1/2, 2/5 and 1/10. Find the new ratio of the remaining partners if C retires. August 3, 2022 What treatment is made of accumulated profits and losses on the retirement of partner? September 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Amit, Binita and Charu are three partners. On 1st April, 2018, their Capitals stood as: Amit Rs. 1,00,000, Binita Rs. 2,00,000 and Charu Rs. 3,00,000. It was decided that: (a) they would receive interest on Capital @ 5% p.a., (b) Amit would get a salary of Rs. 10,000 per month, (c) Binita would receive commission @ 5% of net profit after deduction of commission, and (d) 10% of the net profit would be transferred to the General Reserve. Before the above items were taken into account, the profit for the year ended 31st March, 2019 was Rs. 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners. July 21, 2022
A, B and C were partners sharing profits in the ratio of 1/2, 2/5 and 1/10. Find the new ratio of the remaining partners if C retires. August 3, 2022
What treatment is made of accumulated profits and losses on the retirement of partner? September 27, 2022