A and B are partners sharing profit losses in 3:2 ratio They admitted c for 1/4 share - Accountancy - Reconstitution- Admission of a Partner

Question

A and B are partners sharing profit & losses in 3:2 ratio
They admitted c for 1/4 share in profits The new profit sharing
ratio agreed was 2:1:1 C brought Rs 50000 for his capital His share
of goodwill was agreed to at Rs 15000 C could bring only Rs 10000
out of his share of goodwill Record necessary journal entries in
the books of firm ?

Jyoti Dua · Answer

new PSR of A,B andC = 2:1:1 ; old PSR of A and B = 3:2 ;
sacrifice for A = 3/5-2/4 = 2/20 ; B = 2/5-1/4= 3/20 hence
sarificing ratio is = 2:3
(1) BANK A/C DR 60000
TO CAPITAL A/C 50000
TO PREMIUM FOR GOODWILL A/C 10000
(2) PREMIUM FOR GOODWILL A/C DR 10000
C's CAPITAL A/C DR 5000
TO A's CAPITAL A/C 6000
TO B's CAPITAL A/C 9000