Question

P, Q and R share profits in the ratio of 5 :3:2. S was admitted into partnership. S brings in Rs.
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 years' purchase of last four years' average profits. The
profits of the last four years’ are Rs. 32,000, Rs. 38,000, Rs. 35,000 and Rs. 31,000 respectively. S
cannot bring goodwill in cash. Goodwill already appears in the books at Rs. 50,000. Give Journal
entries. 4

Answer 1

Answer:

what is the meaning of Journal

entries.