Ashok and Rajesh are partners sharing profits in the ratio of 7 : 3. Their capitals on 1st January, 2008 were Rs. 80,000 and Rs. 60,000 respectively. They admitted Vijay into partnership on that date giving him a 1/5th share in the future profits, which he acquired equally from Ashok and Rajesh. Vijay is to bring in Rs.50,000 as his share of capital. Find new profit sharing ratio and record necessary journal entries.

Dear Student,
Here is your answer,


NOTE: AS QUESTION IS SILENT ABOUT THE TREATMENT OF GOODWILL, THEREFORE IT'S DONE IN THE SOLUTION.
AND ALSO IT HAS BEEN ASSUMED THAT VIJAY IS UNABLE TO BRING GOODWILL IN CASH as question does not signifies.

Regards.

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