P and Q are partners sharing profits as 3:2. They admit R as a new partner for 1/4th share. The Goodwill Account appears in the books at its full value $20,000. R is to pay proportionate amount as premium and he pays it privately to P and Q. Show the Journal Entries.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
P and Q are partners sharing profits as 3:2. They admit R as a new partner for 1/4th share. The
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