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B and C were partners in a firk sharing profit in the ratio 5:3 . they admitted D as a partner for 1/4th share in the profits of the firm wch he acquired from B and C in the ratio of 3:2 D brought 200000 for his capital and necessary amount of goodwill in cash for his share in the firm. the good will of the firm was valued at 180000 calculate new profit-sharing ratio of B,Cand D and oass necessary Journal entries in the books of the firm for above transactions?
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B and C were partners in a firk sharing profit in the ratio 5:3 . they...
New Profit-Sharing Ratio Calculation
1. B and C's total share= 5+3=8
2. D's share= 1/4 of total share= 8/4= 2
3. B and C's share after giving 1/4 to D= 8-2= 6
4. D's share acquired from B and C= 3/5 of 1/4= 3/20
5. D's share acquired from B= 3/5*3/5= 9/25
6. D's share acquired from C= 3/5*2/5= 6/25
7. Total share= 6+6+2= 14
8. B's new share= 6/14= 3/7
9. C's new share= 6/14= 3/7
10. D's new share= 2/14= 1/7
11. New profit-sharing ratio= B:C:D= 3:3:1

Journal Entries
1. For D's capital and goodwill contribution:
Dr. Cash/Bank account (for capital contributed)= 200000
Dr. Goodwill account (for goodwill contribution)= 180000
Cr. D's capital account (for capital contributed)= 200000
Cr. B's capital account (for share sold to D)= 108000 (3/5 of 180000)
Cr. C's capital account (for share sold to D)= 72000 (2/5 of 180000)

2. For adjusting B and C's share after admitting D:
Dr. D's capital account (for share acquired from B and C)= 57000 (9/25 of 200000)
Dr. D's capital account (for share acquired from C)= 43200 (6/25 of 200000)
Cr. B's capital account (for share transferred to D)= 51300 (3/5 of 57000)
Cr. C's capital account (for share transferred to D)= 34200 (2/5 of 57000)
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B and C were partners in a firk sharing profit in the ratio 5:3 . they admitted D as a partner for 1/4th share in the profits of the firm wch he acquired from B and C in the ratio of 3:2 D brought 200000 for his capital and necessary amount of goodwill in cash for his share in the firm. the good will of the firm was valued at 180000 calculate new profit-sharing ratio of B,Cand D and oass necessary Journal entries in the books of the firm for above transactions?
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B and C were partners in a firk sharing profit in the ratio 5:3 . they admitted D as a partner for 1/4th share in the profits of the firm wch he acquired from B and C in the ratio of 3:2 D brought 200000 for his capital and necessary amount of goodwill in cash for his share in the firm. the good will of the firm was valued at 180000 calculate new profit-sharing ratio of B,Cand D and oass necessary Journal entries in the books of the firm for above transactions? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about B and C were partners in a firk sharing profit in the ratio 5:3 . they admitted D as a partner for 1/4th share in the profits of the firm wch he acquired from B and C in the ratio of 3:2 D brought 200000 for his capital and necessary amount of goodwill in cash for his share in the firm. the good will of the firm was valued at 180000 calculate new profit-sharing ratio of B,Cand D and oass necessary Journal entries in the books of the firm for above transactions? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for B and C were partners in a firk sharing profit in the ratio 5:3 . they admitted D as a partner for 1/4th share in the profits of the firm wch he acquired from B and C in the ratio of 3:2 D brought 200000 for his capital and necessary amount of goodwill in cash for his share in the firm. the good will of the firm was valued at 180000 calculate new profit-sharing ratio of B,Cand D and oass necessary Journal entries in the books of the firm for above transactions?.
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