Question

X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 1. They admit Z as
partner for 175th share of future profits of the firm. Z introduces 40,000, out of which 20,000
is towards goodwill of the firm. You are asked to Journalise the above transactions in the books
of the firm.
Ans. Z's Capital 20,000; Premium (Dr.) * 20,000; X's Capital (Cr.) 15,000; Y's Capital (Cr.)
*5,000.]​

Answer 1

Answer:3:2. On April 1, 2015 they admitted John as a new partner with 1/6 share in profits of ... For example, X,Y and Z are partners in a firm sharing profits in the ratio. 3:2:1. ... For example, if the past average profits of a business works out at Rs. 20,000 ... The above calculation of goodwill is based on the assumption that no change.

Explanation: