Goodwill-admission of a partner

A and B are partners in a business sharing profits in the ratio of 5:3.They admit c as a partner with one-fourth share in the profits which he acquires three-fourth from B.He pays rs.4,000 as his share of goodwill.A and b will be credited by?

A by Rs. 1000 and B by Rs. 3000/-

A and B will be credited for their sacrifice in their sacrificing ratio i.e A by Rs.1000 and B by Rs.3000 and the gaining partner C,'s capital a/c will be debited in his gaining ratio..this entry is used in the situation where effect is given in the books for goodwill without opening goodwill account

Another alternative treatment is debit goodwill a/c and credit A and B's A/c in their old ratio and write off goodwill by debiting All 3 new partner's capital A/c in the new ratio and credit Goodwill A/c

A and B Will be credited in their sacrifice Ratio.,which works out ot be 1:3

Hence,A Will be credited by Rs.1000 and B by Rs.3000.

Thanks for the answer but can someone please solve problem in detail .

A and B are partners in a business sharing profits in the ratio of 5:3.They admit c as a partner with one-fourth share in the profits which he acquires three-fourth from B.He pays rs.4,000 as his share of goodwill.A and b will be credited by?

 A & B WILL BE CREDITED BY 1000 AND 3000 RESPECTIVELY i.e. in there sacrificing ratio which comes out to be 1:3

CALCUATION:-

B'S SACRIFICE = 1/4{C'S SHARE} * 3/4{FROM B BY C} = 3/16

A'S SACRIFICE = 1/4{C'S SHARE} * 1/4{REMAINING FROM A BY C} = 1/16

SACRIFICING RATIO = 1/16:3/16 OR 1:3