# Solve 30 Q30. P and Q are partners sharing profit & losses as 2 : 3. R and S are amities and profit sharing ratio becomes 3 : 4 : 3 : 2. Goodwill is valued at 3,00,000, R brings  required goodwill and Rs. 2,00,000 cash for Capital .S brings in Rs.1,00,000 cash and Motor Vehicle for Rs/80,000 as his Capital in addition to the required amount of goodwill in cash.   Show the necessary journal entries . [Ans. Sacrificing Ratio 9 : 16 .]

Dear Student,

Old ratio between P & Q was 2:3 ; New ratio after R & S's admission is 3:4:3:2
Sacrificing ratio = 9:16

 Date Particulars LF Amount (in Rs) Amount (in Rs) Cash A/c Dr 2,75,000 To R's Capital A/c 2,00,000 To Premium for Goodwill A/c (3,00,000*3/12) 75,000 (R brings his share of Capital & Goodwill) Cash A/c Dr 1,50,000 Motor Vehicle A/c 80,000 To S's Capital A/c 1,80,000 To Premium for Goodwill A/c (3,00,000*2/12) 50,000 (S brings his share of Capital & goodwill) Premium for Goodwill A/c (1,25,000) Dr 1,25,000 To P's Capital A/c 45,000 To Q's Capital A/c 80,000 (Goodwill divided among old partners in sacrificing ratio)

Regards,

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