A and B are in partnership sharing profit and losses in the ratio of 5:3. C is admitted as a partner paying Rs 40,000 as capital and the necessary amount of goodwill which is valued at Rs 60,000 for the firm. Goodwill already appears in the books at Rs 8,000.Partners withdrew half of goodwill.His share of profit is 1/5th of which he takes 1/10th from A and 1/10th from B. The profit for the first year of new partnership amounts to Rs 24,000. pass necessary journal entries to adjust goodwill and to distribute profits.
In this problem can anyone please help me finding the sacrifice ratio of old partners and the New Profit sharing Ratio of the New Firm.. ?? pls anyone ..:)
CAclubindia
