Question

Strong and Weak are partners sharing profits in the ratio of 2 : 3. On 1st April, 2020, they
admit Able as partner for 1/4th share in profits. Able brought * 1,00,000 as his capital and
36,000 as premium for goodwill for his 1/4th share in the profits. New profit-sharing ratio
of Strong, Weak and Able is agreed to be 3:3:2. Strong and Weak withdraw the premium
for goodwill. Pass necessary Journal entries.​

Answer 1

Answer:

strong : weak 2:3

new partner Able = 1/4

first step :- calculate the sacrificing ratio

sacrifice = old share - new share

strong = 2/5 - 3/8 = 1/40

weak = 3/5 - 3/8 = 9/40

gain of able = 1/4

sacrificing ratio = 1:9

cash AC...... Dr 1,36,000

to Able's capital AC 1,00,000

to premium for goodwill 36,000

premium for goodwill AC.... Dr. 36,000

to strong's capital AC 3,600

to weak's capital AC 32,400

strong's capital AC....... Dr 3,600

weak's capital AC......... Dr 32,400

to cash AC 36,000

Answer 2

hope it helps..

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