Sachin and Kapil are partners sharing profits and losses in the ratio of 2 : 3. On 1st April, 2023, they admit Amit into partnership for 1/4th share in profits. Amit brought ₹ 2,00,000 for his capital and ₹ 36,000 as premium for his share in the profits.
Sachin and Kapil are partners sharing profits and losses in the ratio of 2 : 3. On 1st April, 2023,
they admit Amit into partnership for 1/4th share in profits. Amit brought ₹ 2,00,000 for his capital and ₹ 36,000 as premium for his share in the profits.
The new profit sharing ratio of Sachin, Kapil and Amit is agreed to be 3 : 3 : 2. Sachin Kapil withdraw the premium for goodwill from the business.
Pass necessary Journal entries when the firm follows Fixed Capital Accounts Method.
Anurag Pathak Changed status to publish June 28, 2023
