Madan and Gopal are partners sharing profits in the ratio of 3 : 2. They admit Sooraj for 1/3rd share in profits on 1st April, 2019. They also decide to share future profits equally. Goodwill of the firm was valued at Rs. 5,50,000. Goodwill existed in the books of account at Rs. 1,00,000, which the partners decide to carry forward. Sooraj is unable to bring his share of goodwill. Pass the necessary Journal entries on admission of Sooraj, if: (a) Goodwill is not to be raised and written off; and (b) Goodwill is to be raised and written off.

Madan and Gopal are partners sharing profits in the ratio of 3 : 2. They admit Sooraj for 1/3rd share in profits on 1st April, 2019. They also decide to share future profits equally. Goodwill of the firm was valued at Rs. 5,50,000. Goodwill existed in the books of account at Rs. 1,00,000, which the partners decide to carry forward. Sooraj is unable to bring his share of goodwill. Pass the necessary Journal entries on admission of Sooraj, if: (a) Goodwill is not to be raised and written off; and (b) Goodwill is to be raised and written off.

Post category:Accountancy
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