Question

Ans.
9:1.1.e., A9,000 and B 1,000.]
A and B carrying on business as
partners used to share profits and losses thus, A 4/7th and B
3/7th and goodwill appeared in the books of the firm at 5,600 when C was admitted as a
partner having 1/7th share in profits and losses. C was asked to pay a premium of 1,400 for
goodwill and the profit-sharing ratio as between A and B remained unchanged.
Show entries in the Journal of firm.
Ans. New Profit-sharing Ratio 24 : 18:21​

Answer 1

Explanation:

Sacrifice ratio between A and B is 4:3

so entry is

Goodwill a/c dr.5600

To A capital a/c 3200

To B capital a/c 2400

( being old goodwill written off )

Second entry is

C capital a/c dr. 1400

To A capital a/c 800

To B capital a/c 600