Rohit and Mohit were partners in a firm sharing profits and losses in the ratio of 3 : 2. Rahul was admitted into partnership for 1/3rd share in profits.

Goodwill of the firm was valued at 30,000. Rahul brought 40,000 as capital and 5,000 out of his share of goodwill premium in cash. At the time of Rahul’s admission, goodwill was appearing in the books of the firm at 15,000.

Pass necessary journal entries for the above transactions in the books of the firm on Rahul’s admission. 

Marks-3, CBSE:2022-23/Zone-4/Set-1/Q-17

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