A and B are partners sharing profits and losses in the ratio of 5:3. C...
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Accounting
A and B are partners sharing profits and losses in the ratio of 5:3. C is admitted as a new partner for 1/5th share. C brings OMR 10,000 as his capital and necessary amount of his share of goodwill in cash. Total goodwill of the firm is OMR 40,000. Goodwill already appears in the balance sheet of A and B is OMR 5,000. What is the suitable journal entry for the amount of goodwill and capital brought by the firm? Option A. Premium a/c Dr.8,000 To As Capital a/c 5,000 To Bs capital a/c 3,000 . Option B. Cash a/c Dr.18,000 To Cs capital a/c 10,000 To premium a/c 8,000 . Option C. As Capital a/c Dr 3,125 Bs capital a/c Dr. 1,875 To Goodwill a/c 5,000. Option D. No journal entry is passed
a.
None of these are correct
b.
Option A, B & C
c.
Option B
d.
Option A
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