Abek and Aman are partners sharing profits and losses in the ratio of 3 : 1. They admit Anand as partner who pays ₹ 30,000 as capital. Anand is to bring cash for his share of goodwill.

Abek and Aman are partners sharing profits and losses in the ratio of 3 : 1. They admit Anand as partner who pays ₹ 30,000 as capital. Anand is to bring cash for his share of goodwill. The new ratio is to be 3 : 1 : 1. Goodwill of the firm is to be based on 3 year’s purchase of the average of 4 year’s profits which were ₹ 15,000; ₹ 12,000; ₹ 18,000 and ₹ 19,000. Goodwill Account exists in the books at ₹ 4,000. Pass necessary Journal entries.