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P and Q are partners in a firm sharing profits in the ratio of 5 : 3. They admit R for 1/6 share. The total goodwill of the firm is Rs. 50,000. Goodwill existing in the books is Rs. 25,000. Pass the journal entry for the share of goodwill to be brought in by R. |
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Answer» Amount of goodwill to be brought in by R = \(\frac{1}{6}\) of (50,000 – 25,000) = \(\frac{1}{6}\) of 25,000 = \(\frac{1}{6}\) × 25,000 = Rs. 4,167 The Journal entry is
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