Question

A and B are partner sharing profit ratio in the ratio of 3:2. They admitted C as a new partner for ¼ share

in the profit which he takes 1/6 from A and 1/12 from B. C bring 18,000 as goodwill out of his share of

30,000.Give necessary journal entries​

Answer 1

ANSWER

At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.

Goodwill brought in by new partner = Total goodwill of firm * C's share of profit

Goodwill brought in by new partner = Rs. 20160 * (1/4) = Rs. 10080

Half of goodwill brought in by C on his admission is distributed among A and B in their old ratio i.e., 3 : 2

Amount withdrawn by-

A = Rs. 10080 * (1/2) * (3/5) = 1680

B = Rs. 10080 * (1/2) * (2/5) = 840

Answer 2

Answer:

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