Question

x and y are partners sharing profits in the ratio of 5:4 they admit Z in the firm for 1/3rd profit which he takes 2/9th part from x and 1/9th from y and brings 1500 as premium pass journal entries on Z's admission
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Answer 1

Answer:

bank a/c. dr. 1500

to premium for goodwill a/c. 1500

premium for goodwill a/c. dr. 1500

to x's capital a/c. 1000

to y's capital a/c. 500