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A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. A new partner C is admitted. A surrenders 1/5th of his share and B surrenders 2/5th of his share and B surrenders 2/5th of his share in favour of C. For this purpose of C’s admission, goodwill of the firm is valued at ₹ 75,000 and C brings in his share of goodwill in cash which is retained in the firm’s books. Journalise the above transactions. |
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Answer» dwill = = B's GOODWILL = = EXPLANATION:Old Ratio A and B = A's Sacrifice = B's Sacrifice = Sacrificing Ratio A and B = New Ratio = Old Ratio - Sacrificing RatioA's New Share = B's New Share = C's share = A's Sacrifice + B's SacrificeC's share = New Ration is C's will bring Premium for Goodwill = Distribution of Premium for GoodwillA's Goodwill = = B's Goodwill = = |
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