P, Q & R were partners sharing profit in the ratio 4:3:3 . W was admitted to the partnership, bringing Rs. 1,00,000 capital and Rs. 24,000 as his shar - Accountancy MCQ CUET Accountancy 2022 15 July Shift 2 2026 | ExamTest.live

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P, Q & R were partners sharing profit in the ratio 4 : 3 : 3 . W was admitted to the partnership, bringing Rs. 1, 00, 000 capital and Rs. 24, 000 as his share of Goodwill. Choose the correct entry for retaining of Goodwill brought in by W. W's share in profit was \frac{1}{4} th .

A $Goodwill A/c Dr 24000 to W's capital A/c 24000$
B $W's capital A/c Dr 24000 to premium for Goodwill A/c 24000$
C $Premium for Goodwill A/c Dr 24000 to P's capital A/c 9600, To Q's Capital A/c 7200, To R's Capital A/c 7200$
D $Premium for Goodwill A/c Dr 24000 to P's Capital A/c 8000, To Q's Capital A/c 8000, To R's Capital A/c 8000$

Solution & Step-by-step Explanation

When a new partner brings premium for goodwill in cash, it is credited/distributed among the sacrificing partners in their sacrificing ratio.Since no specific new profit-sharing details are given, the sacrificing ratio is equal to the old profit-sharing ratio, which is 4 : 3 : 3 .Distribution of Premium for Goodwill (Rs. 24, 000):P's share = 24, 000 \times \frac{4}{10} = 9, 600 Q's share = 24, 000 \times \frac{3}{10} = 7, 200 R's share = 24, 000 \times \frac{3}{10} = 7, 200 The journal entry is: Premium for Goodwill A/c Dr. 24, 000 To P’s Capital A/c 9, 600 To Q’s Capital A/c 7, 200 To R’s Capital A/c 7, 200

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P, Q & R were partners sharing profit in the ratio 4 : 3 : 3 . W was admitted to the partnership, bringing Rs. 1, 00, 000 capital and Rs. 24, 000 as his share of Goodwill. Choose the correct entry for retaining of Goodwill brought in by W. W's share in profit was \frac{1}{4} th .

Goodwill A/c Dr 24000 to W's capital A/c 24000

W's capital A/c Dr 24000 to premium for Goodwill A/c 24000

Premium for Goodwill A/c Dr 24000 to P's capital A/c 9600, To Q's Capital A/c 7200, To R's Capital A/c 7200

Premium for Goodwill A/c Dr 24000 to P's Capital A/c 8000, To Q's Capital A/c 8000, To R's Capital A/c 8000

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