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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, 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.

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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 adjusted
through current accounts)


Working Note:

Calculation of Hidden Goodwill


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