Question

3. On ist January, 2019. A and B, sharing profits in the ratio of two-third and one-third
respectively, agree to admit Cinto partnership on condition that he pays 30,000 as capital and
* 9,000 for one-sixth share of goodwill which he acquires equally from A and B.
Give necessary Journal entries to record these transactions.
(Ans. Premium for Goodwill credited to A's & B's Capital A/es * 4,500 each.)
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Answer 1

Explanation:

1. Bank a/c Dr. 39000 To C's capital a/c 30000. To goodwill a/c 9000
2. Goodwill a/c Dr. 9000. To A's capital a/c 4500. To B's capital a/c 4500