Question

A and B are partners in a firm sharing profit in the ratio of 3:2 they admit c into partnership for 1/5 th share of profit the Goodwill of the firm is valued at rs 100000 he bring his share of goodwill in cash then pass journal entryy​

Answer 1

Answer:

Cash A/c-------Dr. 20,000

To Goodwill A/c. 20,000

(Being cash brought in C for 1/5 share of goodwill)

Explanation:

Answer 2

Answer:

cash a/c dr 20000

to goodwill 20000

(being goodwill bring by new partner)

goodwill a/c dr 20000

to a a/c 12000

to b a/c 8000

(being goodwill transfered to old partner)