Question

18. A and B were partners in a firm sharing profits in the ratio of 4:1. on 1-3-2005, they admitted C as a new partner for 1/3rd share in the profits of the firm. They fixed the new profit sharing ratio as 4:2:3. The P & L A/c on the date of admission showed a Balance of ₹32,000 (Dr). The firm also had a reserve of ₹1,00,000. C is to bring ₹60,000 as premium for his share of goodwill. Showing your calculations clearly, pass necessary journal entries to record the above transaction

Answer 1

1/3/2005

partner A share of profit 4/5
partner B share of profit 1/5