A and B are partners sharing profits and losses in the ratio of 5:3. C is admitted as a new partner for 1/5th share. C brings RO. 50,000 as his capital but he is not able to bring his share of Goodwill in cash. Total Goodwill of the firm is RO. 60,000. Pass necessary journal entries when in the books of A and B: (a) No Goodwill already appears . (b) Goodwill already appears at RO. 24,000.
A and B are partners sharing profits and losses in the ratio of 5:3. C is admitted as a new partner for 1/5th share. C brings RO. 50,000 as his capital but he is not able to bring his share of Goodwill in cash. Total Goodwill of the firm is RO. 60,000. Pass necessary journal entries when in the books of A and B: (a) No Goodwill already appears . (b) Goodwill already appears at RO. 24,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A and B are partners sharing profits and losses in the ratio of 5:3. C is admitted as a new partner for 1/5th share. C brings RO. 50,000 as his capital but he is not able to bring his share of Goodwill in cash. Total Goodwill of the firm is RO. 60,000. Pass necessary journal entries when in the books of A and B:
(a) No Goodwill already appears
. (b) Goodwill already appears at RO. 24,000.
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