A B and C are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted D as a new partner, who brings ₹ 5,00,000 as capital and ₹ 2,10,000 as his share of goodwill in cash

A, B and C are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted D as a new partner, who brings ₹ 5,00,000 as capital and ₹ 2,10,000 as his share of goodwill in cash. A surrendered 1/5th of his share, B surrendered 1/6th of his share and C surrendered 1/8th of his share in favour of D.

Find out sacrifice ratio and Pass necessary journal entries for the above.

[Ans. Sacrificing Ratio 4 : 2 : 1.]