A and B are partners in a firm sharing profits and losses in the proportion of 3/4th and 1/4th res
Channel: Doubtnut
Date: 29/03/2020

A and B are partners in a firm sharing profits and losses in the proportion of 3/4th and 1/4th respectively. On 1st April, 2019, they take C into partnership for 1/5th share of profits. C acquires his share from A and B in the ratio of 2 : 1. Value of goodwill is determined at RS 24,000. At present, C is not in a position to bring amount towaerds goodwill. Give necessary Journal entries under the following alternative cases: Case 1. When the Goodwill Account appeare at RS 10,000 in the books of the firm. Case 2. When Goodwill Account is not appearing in the books of the firm.