A and B are partners sharing profits and losses in the proportion of 7 : 5. They agree to admit C, their Manager, into partnership who is to get 1/6th share in the business. C brings in ₹ 10,000 for his capital and ₹ 3,600 for the 1/6th share of goodwill which he acquires 1/24th from A and 1/8th from B. Their profits for the first year of the new partnership amount to ₹ 24,000. Pass necessary journal entries in connection with C’s admission and apportion the profits between the partners.

A and B are partners sharing profits and losses in the proportion of 7

1.	A and B are partners sharing profits and losses in the proportion of 7 : 5. They agree to admit C, their Manager, into partnership who is to get 1/6th share in the business. C brings in ₹ 10,000 for his capital and ₹ 3,600 for the 1/6th share of goodwill which he acquires 1/24th from A and 1/8th from B. Their profits for the first year of the new partnership amount to ₹ 24,000. Pass necessary journal entries in connection with C’s admission and apportion the profits between the partners.
Answer» cing RATIO A and B is , Distribution of C’s SHARE of Goodwill in Sacrifice Ratio, A’s Goodwill is and B is and New Profit SHARING Ratio A, B and C is Explanation:1) Sacrificing Ratio A and B 2) Distribution of C’s Share of Goodwill in Sacrifice Ratio A’s Goodwill B’s Goodwill 3) New Ratio = Old Ratio - Sacrificing Ratio A’s New share B’s New share New Profit Sharing Ratio A, B and C 4) Distribution of profit earned in New Ratio A’s Goodwill B’s Goodwill C’s Goodwill

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