Saved Bookmarks
| 1. |
P,Q and R are in partnership sharing profits and losses in the ratio of 3:2:1. They decided to admint S into partnership with 1/8th share which he acquire form P and R equally, At the date of admission S will bring Rs 50,000 as his capital and his share of goodwill in cash Goodwill is to be valued at 3 years purchase of average profits of last 4 years or 5 years whichever is more. Profits were as Rs 20,000, Rs 30,000,Rs 40,000, Rs 70,000 and Rs 65,000. Pass necessary Journal entries and show the working clearly and also find the sacrificing ratio and new ratio. |
|
Answer» P,Q and R are in partnership sharing profits and losses in the ratio of 3:2:1. They decided to admint S into partnership with 1/8th share which he acquire form P and R equally, At the date of admission S will bring Rs 50,000 as his capital and his share of goodwill in cash Goodwill is to be valued at 3 years purchase of average profits of last 4 years or 5 years whichever is more. Profits were as Rs 20,000, Rs 30,000,Rs 40,000, Rs 70,000 and Rs 65,000. Pass necessary Journal entries and show the working clearly and also find the sacrificing ratio and new ratio. |
|