Anil and Sunil are partners in a firm with fixed capitals of RS.3,20,000 and RS.2,40,000 respectively. They admitted Charu as a new partner for 1/4th share in the profits on the firm on 1st April, 2012. Charu brought RS.3,20,000 as her share of capital.
Calculate value of goodwill and record necressary Journal entries.

Explanation

(i) Dr. Bank A/c and Cr. Chaur's Capital A/c-RS.3,20,000, (ii) Dr. Charu's Current A/c-RS.1,00,000, Cr. Anil's Current A/c-RS.50,000 and Sunil's Current A/c-RS.50,000.
Hidden Goodwill-RS.4,00,000.