35 :- On the admission of Ritu, goodwill of the firm of Murty and Shah is valued at Rs 30,000. Ritu is to get 1/4th share of profits. Previously Murty and Shah shared profits in the ratio of 3:2. Ritu is unable to bring premium for goodwill.
Give journal entries in the books of Murty and Shah when:
(a) Goodwill does not exist in the books; and
(b) Goodwill exists in the books at Rs 10,000
36 :- A, B and C are in partnership sharing profits in the ratio of 5:4:1. Two new partners D and E are admitted and the new profit-sharing ratio is 3:4:2:2:1. D is to pay Rs 90,000 for his share of goodwill but E is unable to bring his share of goodwill. Both the new partners introduced Rs 1,20,000 each as their capital.
You are required to pass necessary journal entries.