Question

maran & mohan share profits in the ratio 3:2. they admit moorthy as a new partner. moorthy brings rs. 20000 for capital and rs.16000 for goodwill. half of the goodwill amount is withdrawn by maran and mohan.
the new profit-sharing ratio is 7:5
pass journal entry
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Answer 1

Explanation:

Bank a/c Dr.-------36000

To moorthy capital a/c------20000

To premium for goodwill------16000

Premium for goodwill a/c Dr. -------16000

To maran's capital-------8000

To Mohan's capital------8000

(sacrificing ratio1:1)

Moran 's capital a/c Dr. --------4000

Mohan's capital a/c Dr. ----------4000

To bank a/c---------8000