A & B are in partnership sharing profits & losses in the proportion of 3:1 respectively. On 1-4-2013, they admitted ‘c’ into partnership on the following terms.
i) ‘C’ is to purchase 1/3rd of the goodwill for Rs.2000/- by paying cash
ii) future profits & losses are to be shared by A, B & C equally
Set out the entry to the above arrangement in the firm journal

Question

Examsnet · Accepted Answer

Correct Answer is : Cash/Bank A/c Dr.2,000 ‘B’ s capital A/c Dr.500To ‘A’s capital A/c 2,500

CA CPT 2014 June Question Paper Fundamentals of Accounting for online practice