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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. |
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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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