X, y, Z are partners in 5:3:2 ratio. A is admitted for 1/10 share. he brings capital Rs 40000. Goodwill is valued for the firm Rs 30000. new partner doesn't bring goodwill in cash new ratio is 4:4:1:1. pass journal entries.
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Old psr=5:3:2
New psr= 4:4:1:1
Sacrificing ratio= old-new
X= 5/10-4/10=1/10
Y=3/10-4/10=(-1/10)
Z=2/10-1/10= 1/10
Therefore we see that X and Z are sacrificing while Y is gaining.
A's share of goodwill= 30000*1/10=3000
Journal entry:-
Bank A/C....Dr 40,000
ToA's capital A/c 40,000
A's Current A/c.....Dr 3000
To X's capital a/c 1500
To Z's Capital a/c 1500
Since Y didn't sacrifice anything henceforth his capital A/c will have no role here
Hope this helps!
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