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(Treatment of goodwill). A and B are partners sharing profits and losses in the ratio of 3: 2. C is admitted as a partner

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(Treatment of goodwill). A and B are partners sharing profits and losses in the ratio of 3: 2. C is admitted as a partner and is to be given 1/10th share of profits. C has to bring $40,000 as capital and his share of goodwill which is valued for the firm as $50,000. The old partners withdraw half of the goodwill. Give the journal entries assuming that the capitals are fixed.

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