(When Premium for Goodwill is brought in Cash). A and B are partners in a firm sharing profits
Channel: Doubtnut
Date: 2020-03-29

(When Premium for Goodwill is brought in Cash). A and B are partners in a firm sharing profits of 2:1. On 1st April, 2019, their capital are RS 4,00,000 and RS 2,00,000 respectively. On that date, they admitted C as a new partner of 1/5th share in profits. New profit-sharing ratio of A, B and Ca will be 3:1:1. C brought in RS 1,00,000 as his capital and RS 21,000 as share of premium for Goodwill. Pass Journal entries and show the Capital Accounts of all the Partners.