Question

R & S are partners sharing profits and losses in the ratio of 3:2. They admitted T into the

firm. They have agreed to share the future profits equally. T brought in Rs. 45,000 as

his capital and Rs. 40,000 for his share of goodwill. The goodwill of the firm as in

the books is Rs. 12,500. Write the journal entries.​

Answer 1

Answer:

R's cap a/c Dr 7500

S's cap a/c Dr 5000

To goodwill a/c 12000

(for existing goodwill w/o)