Question

Amar and Akbar are equal partners in a firm. They admitted Anthony as a new partner and the new profit sharing ratio is 4 : 3 : 2. Anthony could not bring his share of goodwill Rs. 45,000 in cash. It is decided to do the adjustment for goodwill without opening Goodwill account. Pass the necessary journal entry for the treatment of goodwill.

Answer 1

$\text{Journal Entry}$
$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F}& \text{Amt.(Cr)}& \text{Amt.(Cr)}\\ & \text{Antony's Capital A/c}& Dr& & 45,000& \\ & \text{To Amar's Capital A/c}& & & & \text{11,250}\\ & \text{To Akbar's Capital A/c}& & & & \text{33,750}\\ & \text{(Being Anthony's share of goodwill not paid in cash}& & & & \\ & \text{adjusted among old partners in sacrificing ratio)}& & & & \end{array}$

Note : Sacrificing ratio = Old Ratio - New Ratio