A and B are partners sharing profit and losses as 2:1. On 1st April 1997 they...

 

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A and B are partners sharing profit and losses as 2:1. On 1st April 1997 they admit C as a partner 1/5th share who pays Rs.4,500 as goodwill privately. On 1st April 1998 they take D as a partner for 1 share who E is admitted as a partner for 1/8th share who brings Rs.9,000 as goodwill which is retained i business. The final profit sharing ratio was agreed among the partners as 5:4:3:2:2. Journalise the above transactions in the books of the firm. [Hint: Sacrificing Ratio of A, B, C & D is 19: -3: -4: 6] A and B are partners sharing profit and losses as 2:1. On 1st April 1997 they admit C as a partner 1/5th share who pays Rs.4,500 as goodwill privately. On 1st April 1998 they take D as a partner for 1 share who E is admitted as a partner for 1/8th share who brings Rs.9,000 as goodwill which is retained i business. The final profit sharing ratio was agreed among the partners as 5:4:3:2:2. Journalise the above transactions in the books of the firm. [Hint: Sacrificing Ratio of A, B, C & D is 19: -3: -4: 6]

Answer rating: 100% (QA)

Transaction 1 Admission of Partner C April 1 1997 ABs Capital Ac Dr Rs 4500 23 sacrificing ratio of A B Cs Capital Ac Cr Rs 4500 23 Explanation A B sa... View the full answer