Question

A and b are sharing profit and losses in the ratio of 4 : 1 'c' is admitted as a new partner for one third share of profit for which he pays rupees 30000 as a goodwill if a and b agree to share future profits equally then the amount of goodwill to be credited to use would be

Answer 1

The answer is in attachment:

Answer 2

old ratio = 4:1

c share = 1/3

a new share = 2/3 * 1/2 = 2/6

b new share = 2/3 * 1/2 = 2/6

( since , they share eually in future )

thus new ratio =1:1:1

a sacrifice = old share - new share

= 4/5 - 1/3 = 7/15

b sacrice = 1/5- 1/3 = -2/15 (-ve sign shows his gain )

c share of goodwill = 30000

thus total goodwill = 30000*3 = 90000

b share for his gain = 2/15*90000= 12000

thus follwing journal is passed :

1) cash a/c dr. 30000

to premium for goodwill 30000

2) premium for goodwill a/c dr. 30000

b current a/c dr. 12000

to a capital a/c 42000

ans . -thus , amount of 42000 is credited to a capital a/c .