Sarthaks Test
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A and B were partners in a firm sharing profits and losses in the ratio of 3: 2. They admitted C as new partner for 3/7th share in the profit and the new profit-sharing ratio will be 2:2:3. C brought Rs.2,00,000 as his capital and Rs.1,50,000 as premium for goodwill. Half of their share of premium was withdrawn by A and B from the firm. Calculate sacrificing ratio and pass necessary Journal entries for the above transactions in the books of the firm. 

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Working Notes :

1. Distribution of premium for goodwill

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