Question

P and Q are partners sharing profits and losses in the ratio of 2 : 1. They admit R into partnership for `4/9`th share in profits which he acquires equally from P and Q. R brings in cash ₹ 2,50,000 as capital and ₹ 1,80,000 as goodwill.

Pass journal entries and find out new profit sharing ratios.

Answer 1

Journal Entries
Date	Prticulars	L.F.	Debit (₹)	Credit (₹)
	Bank A/c   ...Dr.		4,30,000
	To R’s Capital A/c			2,50,000
	To Premium for Goodwill A/c			1,80,000
	(Being cash brought in by R for capital and goodwill)
	Premium for Goodwill A/c   ...Dr.		1,80,000
	To P’s Capital A/c			90,000
	To Q’s Capital A/c			90,000
	(Premium for goodwill transferred to old partners in sacrificing ratio i. e., equally)

Calculation of new profit sharing ratios:

R’s share is `4/9` which he acquires equally from P nd Q.

Therefore, R gets his share from A = `1/2 xx 4/9`

= `4/18`

R gets his share from B = `1/2 xx 4/9`

= `4/18`

New Ratio of P, Q, ard R:

P = `2/3 - 4/18`

= `(2 xx 6)/(3 xx 6) - 4/18`

= `12/18 - 4/18`

= `(12 - 4)/18`

= `8/18`

= `4/9`

Q = `1/3 - 4/18`

= `(1 xx 6)/(3 xx 6) - 4/18`

= `6/18 - 4/18`

= `(6 - 4)/18`

= `2/18`

= `1/9`

R = `4/9`

= `(4 xx 2)/(9 xx 2)`

= `8/18`

= `4/9`