Geeta and Meeta are partners in a firm sharing profits in the ratio

23 :- Geeta and Meeta are partners in a firm sharing profits in the ratio of 3;2. They admit Anita as a new partner. The new profit sharing ratio between Geeta, Meeta and Anita will be 5:3:2. Anita brought in Rs 25,000 for her share of premium for goodwill. Pass necessary journal entries for the treatment of goodwill.

Solution :-

WORKING NOTES :-
(a) Calculation of their sacrificing share
Old ratio – new ratio
Geeta = 3/5 – 5/10 = 1/10
Meeta = 2/5 – 3/10 = 1/10
Thus, their sacrificing ratio is 1:1