On the admission of Rao, goodwill of Murty and Shah is valued at ₹ 30,000. Rao is to get 1/4th share of profits. Previously Murty and Shah shared profits in the ratio of 3 : 2. Rao is unable to bring amount of goodwill. Give Journal entries in the books of Murty and Shah when:

a) Goodwill does not exist in the books

b) Goodwill exists in the books at ₹ 10,000.

Anurag Pathak Changed status to publish May 20, 2023
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