Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
91.0k views
in Accounts by (64.4k points)

B and C are in partnership sharing profits and losses as 3: 1. They admit D into the firm, D paying a premium of Rs.15,000 for 1/3rd share of the profits. As between themselves, B and C agree to share the future profits and losses equally. Draft Journal entries showing appropriations of the premium money.

1 Answer

0 votes
by (106k points)
selected by
 
Best answer

Working Note :

1. Calculation of sacrificing Ratio :

Let combined share of all partner after D's admisson  be = 1

Combined share of B and c's admission = 1- C's share

2. C is gaining in new the firm. hence, c's gain in goodwill be debited to his capital and given to b ( sacrificing partner) goodwill of the firm = premium for goodwill brought by D X Reciprocal D's share 

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...