Hemant and Nishant were partners in a firm sharing profits in the ratio of 3 : 2. Their Capitals were ₹ 1,50,000 and ₹ 1,30,000 respectively. They admitted Somesh on 1st April, 2024 as a new partner for 1/5th share in the future profits

Hemant and Nishant were partners in a firm sharing profits in the ratio of 3 : 2. Their Capitals were ₹ 1,50,000 and ₹ 1,30,000 respectively. They admitted Somesh on 1st April, 2024 as a new partner for 1/5th share in the future profits. Loss on Revaluation amounted to ₹ 20,000. Somesh brought ₹ 1,20,000 as his capital. Calculate the value of goodwill of the firm and record necessary journal entries for the above transactions on Somesh’s admission.

[Ans. Hidden Goodwill ₹ 2,20,000; Somesh’s Current A/c will be debited by ₹ 44,000 and Capital Accounts of Hemant and Nishant will be credited by ₹ 26,400 and ₹ 17,600 respectively.]