A and B are partners sharing profits and losses in the ratio of 5:2. They admitted C as a new partner for 3/8th
share. The new profit sharing ratio is agreed at 2:3:3. The goodwill of the firm on C’s admission was valued at
1,12,000. C is to bring 2,00,000 as his capital and necessary amount for his share of goodwill. Record the
necessary journal entries in the books of the firm.
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Firstly calculate Sacrificing Ratio of each partner.
Find out share of goodwill for each partner.
amount distributable to New partner as goodwill shall be compensate by them (new partner) in their sacrificing ratio of each partner.
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