Q1107
X and Y are partners sharing the profit in the ratio of 3 : 2. They take Z as the new partner who is supposed to bring Rs. 25,000 against capital and Rs. 10,000 against goodwill, New profit sharing ratio is 1 : 1 : 1. Z is able to bring only his share of capital. How this will be treated in the books of the firm?
A.
X and Y will share goodwill bought by Z as Rs. 4,000 : Rs. 1,000
B.
Goodwill be raised to Rs. 30,000 in old profit sharing ratio
AnswerC.
Both A and B
D.
No treatment in the books of the firm
Answer: Option B
Solution
Answer: Option B
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