Sarthaks Test
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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. 

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Working Notes :

1. Calculating of sacrificig Ratio

sacrifiaing Ratio = old Ratio - New Ratio

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