question_answer

P and Q are partners in a firm sharing profits and losses in 3 : 1 ratio. They admitted R for \[\frac{1}{5}th\] share. R could not bring his share of goodwill premium in cash. The goodwill of the firm was valued at Rs. 80,000 on R's admission. Record necessary journal entry for goodwill on R?s admission.

Answer:

                                                                        JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Cr)
	R's Capital A/c	Dr		16,000
	To P's Capital A/c				12,000
	To Q's Capital A/c				4,000
	(Being goodwill adjusted through capital accounts in sacrificing ratio)