Question

. A and B were partners in a firm sharing profits and losses in the ratio of 5;3. They admitted C as a new partner. A surrendered 1/3 rd of his share in favour of C and B surrendered 1/4th of his share in favour of C. C brought Rs.1,50,000 for his capital and Rs.58,000 for his share of goodwill. Calculate the new profit-sharing ratio of A, B and C, sacrificing ratio of A and B and pass necessary journal entries for the above transactions on c’s Admission. (6)​

Answer 1

Explanation:

B and C are partners sharing profits and losses in the ratio 4:1 they admitted A for 1/3 share in profits. His Goodwill of the firm is valued at Rs.172000. what will be the value of A's Premium for goodwill and how much should be compensated to C