A, B and C were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They admit C into partnership with 1/4th share which he acquires from A and B in the ratio of 2 : 1

A, B and C were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They admit C into partnership with 1/4th share which he acquires from A and B in the ratio of 2 : 1. On D’s admission the goodwill of the firm is valued at ₹ 6,00,000. However, D is unable to bring his share of goodwill in cash.

Pass necessary journal entry and also calculate the new profit sharing ratio.

[Ans. New Ratio 4 : 3 : 2 : 3. ]