Question

A, B and C were partners in a firm sharing profits and losses in the ratio 5:3:2. Goodwill is appearing
in the books at the value of 24,000. On 1st April, 2015, C retires from the firm and on the same
day, D is admitted into the firm. The new ratio between A, B and D is agreed at 2:2:1. D brings
60,000 for his share of capital but could not bring his share of goodwill in cash. Goodwill of the firm
is valued at 1,00,000 You are required to pass necessary journal entries.
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Answer 1

Answer:

A and B are partners in a business sharing profits and losses in the ratio of 1/3rd and 2/3rd. On 1st April, 2018, their capitals are ₹ 8,000 and ₹ 10,000 respectively. On that date, they admit C in partnership and give him 1/4th share in the future profits.