Question

x and y are the partners in the ratio of 5:7 they admitted z into partner for 1/4 th share who pays ₹60000 in cash for premium xand y decided to share future profit equally among themselves calculate new ratio and pass necessary journal entry​

Answer 1

Answer:

new ratio= 3:3:2

Explanation:

Journal

premium for Goodwill A/c.....Dr 60,000

to x capital A/c. 20,000

to y capital A/c. 40,000