A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay Rs. 90,000 for his share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners introduced Rs. 1,20,000 each as their capital. You are required to pass necessary Journal entries.

A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay Rs. 90,000 for his share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners introduced Rs. 1,20,000 each as their capital. You are required to pass necessary Journal entries.

Post category:Accountancy
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