Question
A and B are partners sharing profits and losses in the ratio of 5:3. C is admitted as a new partner for 1/5 th share.
A and B are partners sharing profits and losses in the ratio of 5:3. C is admitted as a new partner for 1/5th share. C brings OMR 10,000 as his capital and necessary amount of his share of goodwill in cash. Total goodwill of the firm is OMR 40,000. Goodwill already appears in the balance sheet of A and B is OMR 5,000. What are the possible journal entries for the above given information?
a.
Premium a/c Dr. 8,000 To As Capital a/c 5,000 To Bs capital a/c3,000
b.
As Capital a/c Dr 3,125 Bs capital a/c Dr. 1,875 To Goodwill a/c 5,000
c.
Cash a/c Dr. 18,000 To C's capital a/c 10,000 To premium a/c 8,000
d.
All options are possible journal entries
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