Chintan and Ayush are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted Sudha as a new partner for 1/10th share in profits. Sudha brings ₹ 40,000 as premium for goodwill out of his share of ₹ 70,000. Goodwill already appears in the books at ₹ 40,000.

Pass the necessary Journal entries to record this arrangement in the follow will two cases:

Case – 1. When the unpaid share of goodwill is adjusted through New Partners’ Current A/c

Case – 2: When goodwill is raised for the amount not brought by the new partner and is also written off.

Anurag Pathak Changed status to publish April 1, 2024
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