(When New or Incoming Partner brings a P...

(When New or Incoming Partner brings a Part of his Share of Goodwill).
X and Y are partners sharing profits and losses in the ratio of 3 : 2. They agree to admit Z as a partner for 1/5th share. Z acquires his share from X and Y in the ratio of 2 : 3. Goodwill of the firm is valued at RS 50,000. Z brings in only 60% of his share of goodwill and RS 2,00,000 as his capital through cheque.
Pass necessary Journal entries under each of the following alternative cases:
Case 1. When goodwill does not appear in the books.
Case 2. When goodwill appears in the books at RS 20,000.

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