What the 2 nd line means like 4800 rs paid by C to be credited to loan a/c of A and B
Dear Student,
The premium for goodwill brought by the new partner is generally distributed among the old partners in their sacrificing ratio. This amount is generally credited to the Old Partner's CAPITAL a/c. In this question, it is said to distribute the premium for goodwill (Rs 4800) in the Old Partner's Loan a/c and not Capital a/c.
I hope you have understood the meaning of the 2nd line.
You had asked to provide the meaning of only the 2nd line. Try this question yourself, if you have any confusion in solving this question, then do ask here.
Regards
The premium for goodwill brought by the new partner is generally distributed among the old partners in their sacrificing ratio. This amount is generally credited to the Old Partner's CAPITAL a/c. In this question, it is said to distribute the premium for goodwill (Rs 4800) in the Old Partner's Loan a/c and not Capital a/c.
I hope you have understood the meaning of the 2nd line.
You had asked to provide the meaning of only the 2nd line. Try this question yourself, if you have any confusion in solving this question, then do ask here.
Regards