Ram and Mohan are partners in a firm sharing profits in the ratio of 3 : 2. on 1st April, they admit Sohan as a partner for 1/4th share in the profits

Ram and Mohan are partners in a firm sharing profits in the ratio of 3 : 2. on 1st April, they admit Sohan as a partner for 1/4th share in the profits. Sohan contributed following assets towards his capital and for his share of goodwill.

Stock ₹ 60,000; Debtors ₹ 80,000; Land ₹ 1,00,000, Plant and Machinery ₹ 40,000.

On the date of admission of Sohan, the goodwill of the firm was valued at ₹ 6,00,000.

Pass necessary Journal entries in the books of the firm on Sohan’s admission if:

i) Partners do not withdraw the share of goodwill.

ii) Partners withdraw half of their share of goodwill.