Madan and Gopal are partners sharing profits in the ratio of 3 : 2. They admit sooraj for 1/3rd share in profits on 1st Apirl, 2019. They also decide to share future profits equally. Goodwill of the firm was valued at RS.5,50,000. Goodwill existed in the books of account at RS.1,00,000, which the partners decide to carry forward.
(a) Goodwill is the to be raised and written off, and
(b) Goodwill is to be raised and written off.

Explanation

(a) Dr. Sooraj's Capital A/c-RS.1,50,000, Cr.Mohan's Capital A/c-RS.-1,20,000 and Gopal's Capital A/c-RS.30,000.
(b) (i) Dr. Goodwill A/c-RS.4,50,000, Cr. Madan's Capital A/c-RS.1,20,000 and Gapal's Capital A/c-RS.1,80,000,
(ii) Dr. Mahan's Capital A/c-RS.1,50,000, Gopal's Capital A/c-RS.1,50,000 and Sooraj's Capital A/c-RS.1,50,000, Cr.Goodwill A/c-RS.4,50,000.