Admission Of New Partner

Admission Of A New Partner

(When An Existing Partner also Gains on Admission of New Partner). Ram and Shyam are partnres sharing profits and losses in the ratio of 4:1. They admit Mohan into the partnership on 1st April, 2019 for 1/3rd share in porfits. It was agreed that Ram, Shayam and Mohan would share profits equally in future. Mohan brought in RS 50,000 as goodwill for his 1/3rd share in porfits. Pass necessary Journal entries in the books of the firm.

On the admission of a new partner :