(When two Partners are Simultaneously Admitted).
A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partnres D and E are admittd. Profits are to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay RS 30,000 for his share of goodwill but E is unble to pay for goodwill. Both the new partners introduced RS 40,000 each as their capital. Passs necessary Jonrnal entries.

Explanation

Working Notes:
1. D is paying RS 30,000 as premium for goodwill for 2/12 share. Therefore,Total value of Goodwill `=RS30,000xx12//2=RS1,80,000`. E's share of Goodwill `RS1,80,000xx1//12=RS15,000`.
2. Calculation of Sacrificing Ratio:
Sacrifice /(Gain)=Old Share - New Share

Since C is gaining equal to 4/60 in the profits, threrfore, he will also compensate A and B proportionately `(i.e., RS1,80,000xx4//60=RS12,000)`.