Question

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.​

Answer 1

cash a/c. dr. 242000

To capital a/ c. 200000

To premium for goodwill. 42000

premium for goodwill a/c. dr 42000

B 'scapital a/ c. dr10000

To A's capital a/c 52000