Question

Ahuja and Barua are partners in a firm sharing profits and losses in the ratio of
3:2. They decide to admit Chaudhary into partnership for 1/5 share of profits,
which he acquires equally from Ahuja and Barua. Goodwill is valued at
RS. 30,000. Chaudhary brings in Rs. 16,000 as his capital but is not in a
position to bring any amount for goodwill. No goodwill account exists in books
of the firm. Goodwill account is to be raised at full value. Record the necessary
journal entries. Give Solution
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Answer 1

Answer:

3:2. They decide to admit Chaudhary into partnership for 1/5 share of profits,

which he acquires equally from Ahuja and Barua. Goodwill is valued at

RS. 30,000. Chaudhary brings in Rs. 16,000 as his capital but is not in a

position to bring any amount for goodwill. No goodwill account exists in books

of the firm. Goodwill account is to be raised at full value. Record the necessary

journal entries. Give Solution