Balance Sheet of J and K who share profits in the ratio of 3 : 2 is as follows:
Balance Sheet of J and K who share profits in the ratio of 3 : 2 is as follows:
| Liabilities | ₹ | Assets | ₹ |
| Reserve
J’s Capital K’s Capital |
1,00,000 1,50,000 1,00,000 |
Cash Other Assets |
2,00,000 1,50,000 |
|
3,50,000 |
3,50,000 |
M joins the firm from 1st April, 2023 for half share in the future profits.
He is to pay ₹ 1,00,000 as goodwill and ₹ 3,00,000 for capital. Draft the Journal entries and prepare Balance Sheet in each of the following cases:
a) if M gets his share of profits in the profit-sharing ratio of the old partners.
b) if M gets his share of profits in equal proportion from the old partners
c) if M gets his share of profits in the ratio of 3 : 1 from the old partners, determine the future profit-sharing ratio of the partners in each case.
Anurag Pathak Changed status to publish May 24, 2023
