Page 156 - VIRANSH COACHING CLASSES

Treatment of Goodwill
Date Particulars L.F. Debit (`) Credit (`)
1.4.2018 Cash A/c ...........................................................Dr. 20,000
To Goodwill A/c 20,000
(Being cash brought by Alia as her share of goodwill)
1.4.2018 Goodwill A/c ....................................................Dr. 20,000
To Bhavesh’s Capital A/c 15,000
To Chandra’s Capital A/c 5,000
(Being amount of goodwill distributed among
scarifying partners in sacrificing ratio)
1.4.2018 Bhavesh’s Capital A/c .....................................Dr. 31,500
Chandra’s Capital A/c .....................................Dr. 10,500
To Goodwill A/c 42,000
(Being old goodwill written off from the books)

8 : The Balances sheet of Adil and Sameer who share profits in the ratio of 2:1 as on 31
st
March, 2018
st
Balance Sheet As on 31 March 2018
Particulars Amt (`) Particulars Amt (`)
Capitals: Land & Building 75,000
Adil 90,000 Investment 1,08,000
Sameer 48,600 Debtors 39,000
Investment Fluctuation Reserve 15,000 Goodwill 12,000

General Reserve 12,000 Profit and Loss A/c 12,000
Sundry Creditors 63,000 Advertisement Suspense 12,000
Bills Payable 60,000 Cash 30,600

2,88,600 2,88,600
On 1.4.2018 Raju was admitted into partnership on the following terms :
1 Raju pays ` 30,000 as his capital for 1/4 share.
th
2 Raju pays ` 15,000 for Goodwill. Half of the sum is to be withdrawn by Adil and Sameer.
3. RDD is created @ 10%.
4. The value of land and building is appreciated by ` 30,000.

5. Investments were reduced by ` 22,500.
6. Sundry creditors are to be valued at ` 62,250.
7. Capitals of Adil and Sameer to be adjusted taking Raju’s capital as the base. Adjustment of
capitals is to be made through cash.
Prepare Revaluation Account, Partner’s Capital Account and Balance Sheet of the New
st
Firm as on 1 April, 2018

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