3) Mohan and Sohan are partners in a firm sharing profits and losses in the ratio of 3:2
admit Rohan as a new partner for 1/5th share. The goodwill of the firm is valued at
30,000. Goodwill already appears in the books at * 15,000. Rohan brings in 60% off
share of goodwill and 120000 as his capital in cash. The amount of goodwill brought
cash is withdrawn by the concerned partners to the extent of 30% of what is credited
them. The profits for the first year of new partnership amounted to 60,000.
Give necessary journal entries to adjust goodwill and to distribute profits.
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3) Mohan and Sohan are partners in a firm sharing profits and losses in the ratio of 3:2
admit Rohan as a new partner for 1/5th share. The goodwill of the firm is valued at
30,000. Goodwill already appears in the books at * 15,000. Rohan brings in 60% off
share of goodwill and 120000 as his capital in cash. The amount of goodwill brought
cash is withdrawn by the concerned partners to the extent of 30% of what is credited
them. The profits for the first year of new partnership amounted to 60,000.
Give necessary journal entries to adjust goodwill and to distribute profits.
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