Rao and Reddy are in partnership sharing profits and losses in the ratio of 5 : 3. Kutty is admitted as a partner paying ₹ 40,000 as capital and the necessary amount of goodwill which is valued at ₹ 60,000 for the firm.
Rao and Reddy are in partnership sharing profits and losses in the ratio of 5 : 3.
Kutty is admitted as a partner paying ₹ 40,000 as capital and the necessary amount of goodwill which is valued at ₹ 60,000 for the firm.
Half of the amount of goodwill is withdrawn by Rao and Reddy.
Kutty’s share of profits is 1/5th of which he takes 1/10th from Rao and 1/10th from Reddy.
Pass the necessary Journal entries to adjust goodwill.
Anurag Pathak Changed status to publish June 28, 2023
