Question

A and B are partners sharing profits and losses in the ratio of 3:2 respectively. Goodwill
appears in their books at 3,000. They admit C into partnership, C paying a premium
of 1,000 for 1/4th share of the profits while A and B as between themselves sharing
profits and losses equally.
Pass journal entries to record this arrangement.
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Answer 1

Answer:

At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.

At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.Goodwill brought in by new partner = Total goodwill of firm * C's share of profit

At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.Goodwill brought in by new partner = Total goodwill of firm * C's share of profitGoodwill brought in by new partner = Rs. 9600 * (1/4) = Rs. 2400

At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.Goodwill brought in by new partner = Total goodwill of firm * C's share of profitGoodwill brought in by new partner = Rs. 9600 * (1/4) = Rs. 2400Goodwill brought in by C on his admission is distributed among A and B in their old ratio i.e., 3 : 2

At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.Goodwill brought in by new partner = Total goodwill of firm * C's share of profitGoodwill brought in by new partner = Rs. 9600 * (1/4) = Rs. 2400Goodwill brought in by C on his admission is distributed among A and B in their old ratio i.e., 3 : 2Amount withdrawn by-

At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.Goodwill brought in by new partner = Total goodwill of firm * C's share of profitGoodwill brought in by new partner = Rs. 9600 * (1/4) = Rs. 2400Goodwill brought in by C on his admission is distributed among A and B in their old ratio i.e., 3 : 2Amount withdrawn by-A = Rs. 2400 * (3/5) = 1440

At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.Goodwill brought in by new partner = Total goodwill of firm * C's share of profitGoodwill brought in by new partner = Rs. 9600 * (1/4) = Rs. 2400Goodwill brought in by C on his admission is distributed among A and B in their old ratio i.e., 3 : 2Amount withdrawn by-A = Rs. 2400 * (3/5) = 1440B = Rs. 2400 * (2/5) = 960