Question

P, Q and R share profits in the ratio of 5:3:2. S was admitted into partnership. S

brings in ₹ 30,000 as his capital. S is entitled for 1/5th share in profits which he

acquires equally from P, Q and R. Goodwill of the firm is to be valued at three

year’s purchase of last four years average profits. The profits of the last four years

are ₹ 32,000, ₹38,000, ₹ 35,000,and ₹ 31,000 respectively. S cannot bring

goodwill in cash. Goodwill already appears in the books at ₹50,000. Give Journal

entries. ​

Answer 1

Answer:

answer is in the photo

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