Answer:
Explanation:Ashok : Ramu= 4:1
Bijoy share is = 1/5
*calculation of sacrificing ratio:-
Ashok = 1/5*1/2 = 1/10
Ramu = 1/5*1/2 = 1/10
Sacrificing ratio is 1:1 of Ashok and Ramu
*calculation of new ratio = old ratio-new ratio
Ashok = 4/5 - 1/10 = 7/10
Ramu = 1/5 - 1/10 = 1/10
Bijoy = 1/5*2/2 = 2/10
New ratio of Ashok:Ramu:Bijoy = 7:1:2
* calculation of working goodwill:-
Bijoy’s capital = 70,000
Total capital of firm = 70,000*5/1= 3,50,00
Less capital of all partners (80,000+1,20,000+70,000)=2,70,000
Goodwill of the firm = 3,50,000-2,70,000= 80,000
Journal Entries
1. Cash Account 70,000
To Bijoy's Capital Account 70,000
(Being bijoy bring in Capital)
2. Bijoy' Capital Account 16,000
To Ashok's Capital Account 8000
To Ramu's Capital Account 8000
( Shared between ashok and ramu in sacrificing ratio )
Share of goodwill = 80,000 ×1/5
= 16,000
