Mr. Ali and Mr. Sahil are partners sharing profit in the ratio of 3: 2. They agree to admit Mr. Zaheer for 1/5 share in future profit. Mr. Zaheer brings OMR 2,50,000 as capital and enables to bring his share of goodwill in cash, the goodwill of the firm to be valued at OMR 1,80,000. At the time of admission, goodwill existed in the books of the firm at Rs.80,000. What is the journal entry if Mr. Zaheer brought his share of capital in the business?
Mr. Ali and Mr. Sahil are partners sharing profit in the ratio of 3: 2. They agree to admit Mr. Zaheer for 1/5 share in future profit. Mr. Zaheer brings OMR 2,50,000 as capital and enables to bring his share of goodwill in cash, the goodwill of the firm to be valued at OMR 1,80,000. At the time of admission, goodwill existed in the books of the firm at Rs.80,000. What is the journal entry if Mr. Zaheer brought his share of capital in the business?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr. Ali and Mr. Sahil are partners sharing profit in the ratio of 3: 2. They agree to admit Mr. Zaheer for 1/5 share in future profit. Mr. Zaheer brings OMR 2,50,000 as capital and enables to bring his share of
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