A and B are partners sharing profits in the ratio of 3:2. They admit C – InterviewSolution

1.

A and B are partners sharing profits in the ratio of 3:2. They admit C into partnership for 1/4th share. C is unable to bring his share of goodwill in cash. The goodwill of the firm is valued at Rs. 21,000. give journal entry for the treatment of goodwill on C’s admission.

Answer»

C’s capital A/C Dr.	5250
To A’s capital A/C		3150
To B’s capital A/C		2100
(C’s share of goodwill distributed among old partners in sacrificing ratio i.e. 3:2)

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