Green and blue agree to admit brown into partnership as


Question: Green and Blue agree to admit Brown into partnership as from 1st January, 1961. Brown is to receive a one-fifth share of the profits, Green and Blue receivmg equal shares as before. Goodwill does not appear in the books but is valued at £5,000. Brown introduces £7,000 into the business as capital and premium. Give the Journal entries recording the admission of Brown.

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Accounting Basics: Green and blue agree to admit brown into partnership as
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