Amount of goodwill to be brought in by R
= \(\frac{1}{6}\) of (50,000 – 25,000)
= \(\frac{1}{6}\) of 25,000
= \(\frac{1}{6}\) × 25,000
= Rs. 4,167
The Journal entry is
Cash A/c Dr. |
4,167 |
To goodwill (Premium)(Share of good will brought in by R) |
4,167 |