Question

A and B are partners, sharing profits and losses in the ratio of 3:2. Goodwill appears in their Balance

Sheet at Rs 24,000, when C is admitted into partnership for 1/5th share in profit. He pays Rs50,000 for capital

and Rs8,000 as goodwill. The ratio of the partners A,B and C in the new firm would be 2:2:1.

Pass journal entries in the books of the new firm to record above adjustments.​

Answer 1

Answer:

cash a/c dr.58000

to c's capital a/c 50000

to premium for goodwill a/c 8000

Explanation:

premium for goodwill A/c dr.8000

to A's capital a/c 8000

only a's account will be credited bcz only a sacrifices