Mahesh and Suresh were partners in a firm sharing profits and losses in 1th the ratio of $\displaystyle 2$ : 1. They decided to admit Nita into partnership with $\displaystyle 4$ share in the profits. Nita brought ₹ $\displaystyle 2,00,000$ for her capital and the requisite amount of goodwill premium in cash. The goodwill of the firm is valued at ₹ $\displaystyle 12,00$,000. The new profit sharing ratio of the partners is $\displaystyle 2$ : $\displaystyle 1$ : 1. Mahesh and Suresh withdraw their share of goodwill. Pass necessary journal entries in the books of the firm for the above transactions.

Books of Mahesh and Suresh Journal Date Particulars L.F Dr. Amount Cr. Amount ₹ ₹ Cash/Bank A/c Dr. $\displaystyle 5,00,000$ To Nita’s Capital A/c $\displaystyle 2,00,000$ To Premium for Goodwill A/c $\displaystyle 3,00,000$ (Share of premium for goodwill brought by Nita) Premium for Goodwill A/c Dr. $\displaystyle 3,00,000$ To Mahesh’s Capital A/c $\displaystyle 2,00,000$ To Suresh’s Capital A/c $\displaystyle 1,00,000$ (Premium for goodwill adjusted to Partners’ account in sacrificing ratio $\displaystyle 2$:$\displaystyle 1$) Mahesh’s Capital A/c Dr. $\displaystyle 2,00,000$ Suresh’s Capital A/c Dr. $\displaystyle 1,00,000$ To Cash A/c $\displaystyle 3,00,000$ (Share of goodwill withdrawn by partners) .