Sarthaks Test
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A and B are in partnership sharing profits and losses in the ratio of 5: 3. C is admitted as a partner who pays Rs.40,000 as capital and the necessary amount of goodwill which is valued at Rs. 60,000 for the firm. His share of profits will be 1/5th which he takes 1/10th from A and 1/10th from B. Give Journal entries and also calculate future profit-sharing ratio of the partners.

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Working Notes :

1. Calculation of New profit sharing Ratio 

2.Calculation of New profit sharing Ratio

3.Distribution of C's share of goodwill (in sacrificing Ratio)

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