A and B are partners sharing profits and losses in the ratio of 2:1. On 1st april 2019 their capital are 4,00,000 and 2,00,000 respectively. On that date they admitted C as a new partner for 1/5th share. New profit sharing ratio A,B and C will 3:1:1. C bought in rupees 1,00,000 as his capital and rupess 21000 as his share of premium. Write down goodwill related journal entries.
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cash/bank A/C. Dr. 121000
To C capital a/c 100000
To premium for Goodwill a/c 21000
premium for Goodwill A/C. 21000
To A capital a/c. 14000
To B capital a/c. 7000
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