Question

A and B are partners. They share profits and losses in the ratio of 4: 3. They admit
on 1st January, 2017 C in partnership who is unable to pay the amount of goodwill
in cash but pays 10,000 as his capital. The goodwill of the firm was valued at
10,500. New profit sharing ratio is 5 : 3:2. Make Journal Entries when Goodwill
account is raised in the books but is immediately written off.​

Answer 1

Answer:

Explanation:

A's capital a/c  (10500×4/7)           Dr.           6000

B's capital a/c  (10500×3/7)            Dr.           4500

        To goodwill a/c                                                        10500