James and Thomas are partners in a firm sharing profits and losses in the ratio of 3 : 1. They admit Michael as a partner for 1/3rd share in the profits of the firm.

James and Thomas are partners in a firm sharing profits and losses in the ratio of 3 : 1. They admit Michael as a partner for 1/3rd share in the profits of the firm. He brings ₹ 15,000 in cash for his share of goodwill. As between themselves, James and Thomas agree to share future profits and losses equally. The amount of goodwill is withdrawn by the concerned partners to the extent of 40% of what is credited to them.

Pass Journal entries showing the appropriation of the premium money.