Question

A B and C are partners sharing profits in the ratio of 5 : 3 :2 Goodwill appearing in the books at 50000. D is admitted into partnership the new profit sharing ratio between A,B,C and D 3: 3 :2 :2. give the journal entries for the Goodwill if the new partner D brings 1 lakh rupees for capital and cash for his share of goodwill. the Goodwill of the firm is valued 120000 rupees it is not appear in the books of account after D admission​

Answer 1

A’s capital a/c 25000

B’s capital a/c. 15000

C’s capital a/c. 10000

To g/w a/c. 50000

Cash a/c 1,24,000

To capital a/c. 1,00,000

To premium for gw a/c 24000

Premium for gw a/c 24000

To A’s capital a/c. 24000