Balance Sheet of J and K who share profits in the ratio of 3 2 is as follows BALANCE SHEET as at 31s......

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Accountancy ( 12th) Admission of a Partner Add to Study Deck

Balance Sheet of J and K who share profits in the ratio of 3 : 2 is as follows:

BALANCE SHEET

as at 31st March, 2019

Liabilities			Assets
Reserve J's Capital	1,50,000	1,00,000	Cash Other Assets	2,00,000 1,50,000
K's Capital	1,00,000	2,50,000
		3,50,000		3,50,000

M joins the firm from 1st April, 2019 for a half share in the future profits. He is to pay 1,00,000 for goodwill and 3,00,000 for capital. Draft the Journal entries and prepare Balance Sheet in each of the following cases:

If M acquires his share of profit from the firm in the profit-sharing ratios of the partners.
If M acquires his share of profits from the firm in equal proportions from the original partners.
If M acquires his share of profit in the ratio of 3 : 1 from the original partners, ascertain the future profit-sharing ratio of the partners in each case.

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