1.

X and Y are partners sharing profits in the ratio of 3 : 1. Z is admitted as a partner for which he pays ₹ 30,000 for goodwill in cash. X, Y and Z decided to share the future profits in equal proportion. You are required to pass a single journal entry to give effect to the above arrangement.

Answer»

Y's SACRIFICING Ratio is and and Goodwill of the FIRM on the basis of Y's Share is Explanation:1) Sacrificing Ratio = Old Ratio-New Ratio   X's Sacrificing Ratio (Sacrifice)    Y's Sacrificing Ratio (GAIN)2) Goodwill of the firm on the basis of Z's Share     Y's Gain     X's will get Z's share of Goodwill = Y's share of gain    i.e.



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