Question

Ashu and Bhavya are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit Hitesh as a partner for 1/5th share. As agreed between themselves, Ashu and Bhavya decide to share future profits in the ratio of 13: 7. Goodwill of the firm is valued at 5 years' purchase of Super Profit based on average profit of last 3 years. Average Profit and Normal Profits are 1,05,000 and 90,000 respectively. Goodwill already appears in the books at * 50,000. Hitesh brings in 60% of his share of firm's goodwill and * 2,50,000 as his capital. The amount of goodwill is withdrawn by the concerned partners to the extent of 50% of the amount credited to them. Profit for the first year of new partnership was 2,50,000. Pass the necessary Journal entries to adjust goodwill and to distribute profit.

Answer 1

Answer:

What can we do if it is like this

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