Rohit and Mohit were partners in a firm sharing profits and losses

34 :- Rohit and Mohit were partners in a firm sharing profits and losses in the ratio of 3:2. Rahul was admitted into partnership for 1/3 share in profits. Goodwill of the firm was valued at Rs 30,000. Rahul brought Rs 40,000 as capital and Rs 5,000 out of his share of goodwill premium in cash. At the time of Rahul’s admission, goodwill was appearing in the books of the firm at Rs 15,000.
Pass the necessary journal entries for the above transactions in the books of the firm on Rahul’s admission.

Solution :-

WORKING NOTES :-
(a) Calculation of New PSR
Let the total share of profit be 1
Rahul was admitted for 1/3
Remaining share = 2/3
Rohit’s new share = 2/3 x 3/5 = 6/15
Mohit’s new share = 2/3 x 2/5 = 4/15
Rahul’s share = 1/3 x 5/5 = 5/15
New PSR = 6:4:5

(b) Calculation of sacrificing/gaining share
Rohit = 6/15 – 3/5 = -3/15 (sacrifice)
Mohit = 4/15 – 2/5 = -2/15 (sacrifice)
Thus, their sacrificing ratio is 3:2

(c) Calculation of share of goodwill
Rahul’s share of goodwill = 30,000 x 1/3 = Rs 10,000
Rohit = 10,000 x 3/5 = Rs 6,000
Mohit = 10,000 x 2/5 = Rs 4,000