Question

T.LTO
Q. 43. X, Y and Z were partners sharing profits and losses as to X one-half; Y
one-third; and Z one-sixth. As from 1st April, 2019, they agreed to admit A into
partnership for one-sixth share in profits and losses, which he acquires equally from X
and Y, and is to bring in 50,000 for his capital and 20,000 as premium for goodwill.
A paid in his capital money but in respect of premium for goodwill, he could bring in
only 15,000.
You are required to:
(i) give the Journal entries to carry out the above arrangements, and
(ii) work out the new profit-sharing ratio of the partners.
[Ans. New Ratio 5:3:2:2]
Hint. Premium for Goodwill A/c will be debited by 15,000 and Current A/c of A w
debited by 5,000 and Capital A/cs of X and Y will be credited by 10,000 each.​

Answer 1

Explanation:

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