A and B carrying on business as partners used to share profits and losses thus; A 4/7ths and B 3/7ths, and goodwill appeared in the books of the firm at ₹ 2,80,000 when C was admitted as a partner having 1/7th share in profits and losses
Solution:- Explanatory Notes:– Entry 1: Existing goodwill must be written off among old partners in their old profit-sharing ratio (4:3). A’s share: (4/7) x 2,80,000 = ₹1,60,000. B’s share: (3/7) x 2,80,000 = ₹1,20,000. Entry 3: Since…