Accounting treatment of Goodwill Lesson

1

Accounting treatment of Goodwill

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8

Multiple Choice

Sudhir and Iqbal are partners in a partnership firmsharing profits and losses in the ratio of 2:1. On 1st April2018 Bharat comes in as a partner for 1/4th share in the firms profit. Bharat contributes ₹15,000 as capital and ₹4,500 as goodwill. The journal entry of contributing Capital is :

1

Bharat's Ac Dr

To capital

2

Cash A/c Dr.

To Bharat's Ca[ital

3

Bharat's Capital A/c Dr

To cash

4

None of the above

9

Multiple Choice

Sudhir and Iqbal are partners in a partnership firmsharing profits and losses in the ratio of 2:1. On 1st April2018 Bharat comes in as a partner for 1/4th share in the firms profit. Bharat contributes ₹15,000 as capital and ₹4,500 as goodwill. The journal entry of Godwill when Goodwill amount is paid privately :

1

Premium of Goodwill A/c Dr

To Bhara'ts Capital A/c

2

Cash A/c Dr.

To Bharat's Capital A/c

3

No entry

4

None of the above

10

Multiple Choice

Sudhir and Iqbal are partners in a partnership firmsharing profits and losses in the ratio of 2:1. On 1st April2018 Bharat comes in as a partner for 1/4th share in the firms profit. Bharat contributes ₹15,000 as capital and ₹4,500 as goodwill. The journal entry of Godwill when Goodwill is retained in business :

1

Premium of Goodwill A/c Dr

To Cash

2

Premium of Goodwill A/c Dr.

To Sudhir's Capital A/c

To Iqbal's ca[pital A/c

3

No entry

4

None of the above

11

Multiple Choice

Sudhir and Iqbal are partners in a partnership firmsharing profits and losses in the ratio of 2:1. On 1st April2018 Bharat comes in as a partner for 1/4th share in the firms profit. Bharat contributes ₹15,000 as capital and ₹4,500 as goodwill. The journal entry of Goodwill when contributing Goodwill.

1

Premium of Goodwill A/c Dr

To cash

2

Cash Dr

To premium for Goodwill

3

Cash A/c Dr

To Bharat's capital A/c

4

No entry

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21

Multiple Choice

Anirudh and Pam are partners in a partnership Firm sharing Profit in the ratio of 2:1. they admitted Dolly as new partner for 1/4th share. Dolly contribute 50,000 as capital and bring a machine costing ₹20,000 as goodwill. The journal entry of Bringing Goodwill is :

1

Cash A/c Dr

Premium of Goodwill A/c

2

Premium of Goodwill A/c Dr

To Cash

3

Machinery A/c Dr

To premium of goodwill A/c

4

Premium for Goodwill A/c Dr

To Machinery A/c

22

Multiple Choice

Anirudh and Pam are partners in a partnership Firm sharing Profit in the ratio of 2:1. they admitted Dolly as new partner for 1/4th share. Dolly contribute 50,000 as capital and bring a machine costing ₹20,000 as goodwill. The journal entry of Goodwill when retained in the business is :

1

Premium for Goodwill A/c Dr

To Anirudh's Capital A/c

To Pam's Capital A/c

2

Anirudh's Capital A/c Dr

Pam's Capital A/c Dr

To premium for Goodwill A/c

3

No entry

4

None of the above

23

Multiple Choice

Anirudh and Pam are partners in a partnership Firm sharing Profit in the ratio of 2:1. they admitted Dolly as new partner for 1/4th share. Dolly contribute 50,000 as capital and bring a machine costing ₹20,000 as goodwill. The journal entry of Goodwill when partners withdrawn by the partners:

1

Cash A/c Dr

To Anirudh's Capital A/c

To pam's Capital A/c

2

Anirudh's Capital A/c Dr

Pam's Capital A/c Dr

To premium for Goodwill A/c

3

Anirudh's Capital A/c Dr

Pam's Capital A/c Dr

To Cash

4

None of the above

24

Multiple Choice

Anirudh and Pam are partners in a partnership Firm sharing Profit in the ratio of 2:1. they admitted Dolly as new partner for 1/4th share. Dolly contribute 50,000 as capital and bring a machine costing ₹20,000 as goodwill. The journal entry of Goodwill when all partners have decided that goodwill should not appear in the books of new firm:

1

Premium for Goodwill A/c Dr.

To Anirudh's Capital A/c

TO pam's Capital A/c

2

Anirudh's Capital A/c Dr

Pam's Capital A/c Dr

To premium For goodwill A/c

3

No entry

4

None of the Above

Accounting treatment of Goodwill

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