A and B are partners sharing profits in the ratio of 2:1

33 :-  A and B are partners sharing profits in the ratio of 2 : 1. They admit C for 1/4th share in profits. C brings in Rs 30,000 for his capital and Rs 8,000 out of his share of Rs 10,000 for goodwill. Before admission, goodwill existed in the books at Rs 18,000.
Pass Journal entries to give effect to the above arrangement.

Solution :-

WORKING NOTES :-
(a) Calculation of new profit sharing ratio of partners
C was admitted for 1/4th share
Remaining share is 3/4
A = 3/4 x 2/3 = 6/12
B = 3/4 x 1/3 = 3/12
C = 1/4 x 3/3 = 3/12
New PSR of A, B and C is 2:1:1

(b) Calculation of sacrificing/gaining share of partners
A = 2/3 – 2/4 = 2/12
B = 1/3 – 1/4 = 1/12
Sacrificing ratio of A and B is 2:1