Sunil and Dalip are partners in a firm sharing profits and losses in the ratio of 5:3. Sachin is admitted in the firm for 1/5 share of profits. He is to bring in Rs. 20,000 as capital and Rs. 4,000 as his share of goodwill. Give the necessary journal entries,
(a) When the amount of goodwill is retained in the business.
(b) When the amount of goodwill is fully withdrawn.
(c) When 50% of the amount of goodwill is fully withdrawn.

Explanation

(a) When the amount of goodwill credited to existing partners is retained in business

Alternativelt, if the goodwill account is not be the brought into the books of accounts the following entries will be recorded:
`{:((i)Cash A//C ,Dr.,24000,),("To Sachin's Capital" A//c,,,2400),((ii)"Sachin's Capital" A//c,Dr.,4000,),("To Sunil's Capital" A//c,,,2500),("To Dalip's Capital" A//c,,,1500):}`
Note: It assumed that the sacrificing ratio is the same as old profit sharing ratio.