Question

Piyush and Deepika are partners sharing in the ratio of 7:3. they admit Seema as a new partner. The new ratio being 5:3:2. Pass journal entries.

Answer 1

| Cash A/C Dr. | 4000 | |
| To premium A/C | | 4000 |
| (Amount of goodwill brought in by new partner) | | |

| Premium A/C Dr. | 4000 | |
| To Piyush’* capital A/C | | 4000 |
| (Goodwill distributed among sacrificing partners in their sacrificing ratio.) | | |