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Parvan and Rahim are partners sharing profits and losses in the ratio of 3 : 2. karan is admitted as a partner with 1/4th share in profits. karan was unable to bring his share of goodwill premium in cash.

The Journal entry recorded for goodwill premium is given below:

Date Particulars L.F. Dr. (₹) Cr. (₹)
Karan’s Current A/c Dr.
To Parnav’s Capital A/c
To Rahim’s Capital A/c
(Adjustment of goodwill made)
30,000 20,000
10,000

New profit sharing ratio of Parnav, Rahim, and Karan will be

a) 2 : 1 : 1

b) 3 : 3 : 2

c) 4 : 5 : 3

d) 26 : 19 : 15

Anurag Pathak Changed status to publish June 8, 2023
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