Benu and Leena are partners in a firm sharing profits and losses in the ratio of 5:3. They admit Deepa and Erica as two new partners. The new profit-sharing ratio is decided to be 3:2:2:3. Both the new partners introduce ₹1,00,000 each as capital. Deepa pays ₹ 40,000 in cash for her share of goodwill but Erica is unable to contribute any amount for her share of goodwill. At the time of Deepa’s and Erica’s admission, the firm had an Advertisement Suspense Account of ₹ 56,000 which is written off.
You are required to pass necessary journal entries to record the above adjustments at the time of admission of Deepa and Erica.
OR
Greg and Rohit are partners in a firm sharing profits and losses in the ratio of 2:3. Their Balance Sheet as at 31st March, 2022, is given below:
On 1st April, 2022, they admit Kunal as a new partner on the following terms:
(a) The new profit-sharing ratio of Greg, Rohit and Kunal to be 5:3:2. (b) Kunal to bring his share of capital of = 25,000 and his share of goodwill of ₹5,000 in cash. (c) Office Equipment to be valued at ₹ 42,000.
You are required to prepare Partners’ Capital Accounts.
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