1.

Arti and Bharti are partners in a firm sharing profits in 3:2 ratio,They admitted Sarthi for 1/4 share in the profits of the firm. Sarthibrings Rs. 50,000 for his capital and Rs. 10,000 for his 1/4 share ofgoodwill. Goodwill already appears in the books of Arti and Bharti atRs. 5,000. the new profit sharing ratio between Arti, Bharti andSarthi will be 2:1:1. Record the necessary journal entries in thebooks of the new firm?

Answer»


Arti and Bharti are partners in a firm sharing profits in 3:2 ratio,
They admitted Sarthi for 1/4 share in the profits of the firm. Sarthi
brings Rs. 50,000 for his capital and Rs. 10,000 for his 1/4 share of
goodwill. Goodwill already appears in the books of Arti and Bharti at
Rs. 5,000. the new profit sharing ratio between Arti, Bharti and
Sarthi will be 2:1:1. Record the necessary journal entries in the
books of the new firm?



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