Pass Journal entries to record the following arrangments in the books of the firm:
- B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium (goodwill) of ₹ 20,000 for 1/4th share of the profits, shares of B and C remain as before.
- B and C are partners sharing profits in the ratio of 3 : 2. D is admitted paying a premium of ₹ 21,000 for 1/4th share of profits which he acquires 1/6th from B and 1/12th from C.
Solution :
