Sarthaks Test
0 votes
in Accounts by (64.1k points)
edited by

M and J are partners in a firm sharing profits in the ratio of 3: 2. They admit R as a new partner. The new profit-sharing ratio between M, J and R will be 5: 3: 2. R brought in Rs. 25,000 for his share of premium for goodwill. Pass necessary Journal entries for the treatment of goodwill. 

1 Answer

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

Working Notes :

1. Calculating of sacrificig Ratio

sacrifiaing Ratio = old Ratio - New Ratio

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.