A and B are partners in a firm sharing profits and losses

27 :- A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit C into partnership for 1/5th share. C brings Rs 30,000 as capital and Rs 10,000 as goodwill. At the time of admission of C, goodwill appeared in the Balance Sheet of A and B at Rs 3,000. New Profit sharing ratio of the partners will be 5 : 3 : 2.
Pass necessary Journal entries.

Solution :-

WORKING NOTES :-
(a) Calculation of sacrificing ratio of A and B
Old ratio = 3:2
New ratio = 5:3:2
A = 3/5 – 5/10 = 1/10
B = 2/5 – 3/10 = 1/10
Therefore, their sacrificing ratio is 1:1