Question

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, 2018 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.

Answer 1

Journal
Date 2018	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
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 adjusted through current accounts)

Working Note:

Calculation of Hidden Goodwill