Question

2. 15. P, Q and R share profits in the ratio of 5 : 3:2. S was admitted into partnership. S brings
in 330,000 as his capital. S is entitled for 1/5th share in profits which he acquires equally
from P. and R. Goodwill of the firm is to be valued at three years' purchase of last four
years' average profits. The profits of the last four years' are 32,000, 338,000, 535,000
and 31,000 respectively. S cannot bring goodwill in cash. Goodwill already appears in
the books at 50,000. Give Journal entries.​

Answer 1

Answer:

2. 15. P, Q and R share profits in the ratio of 5 : 3:2. S was admitted into partnership. S brings

in 330,000 as his capital. S is entitled for 1/5th share in profits which he acquires equally

from P. and R. Goodwill of the firm is to be valued at three years' purchase of last four

years' average profits. The profits of the last four years' are 32,000, 338,000, 535,000

and 31,000 respectively. S cannot bring goodwill in cash. Goodwill already appears in

the books at 50,000. Give Journal entries.

Thank u