Question

A B and C are partners sharing profits in the ratio of 4:3 : 1. B retires, selling his share ofprofits to A and C for 8,100; * 3,600 paid by A and 4,500 by C. Profit for the year after B'sretirement was 10,500.You are required (i) to give necessary Journal entries to record the transfer of B's share toA and C; (ii) to calculate new profit-sharing ratio and distribute the profits between A and C.A and C bring the necessary amount.

Answer 1

Answer:

A account dr

B account dr

to premium for goodwill account