Niti and Aditi were partners in a firm sharing profits and losses in the 1th share in the ratio of $\displaystyle 2$ : 3. They admitted John into partnership for $\displaystyle 4$ profits of the firm, which he acquired equally from Niti and Aditi. John brought ₹ $\displaystyle 5,00,000$ as his capital and ₹ $\displaystyle 1,00,000$ as premium for goodwill. One-fourth of the goodwill was withdrawn by the old partners. Pass necessary journal entries for the above transactions in the books of the firm.

Books of Niti and Aditi Journal Date Particulars L.F Dr. Amount Cr. Amount ₹ ₹ Cash/Bank A/c Dr. $\displaystyle 6,00,000$ To John’s Capital A/c $\displaystyle 5,00,000$ $\displaystyle 1,00,000$ To Premium for Goodwill A/c (Capital & share of premium for goodwill brought by John) Premium for Goodwill A/c Dr. $\displaystyle 1,00,000$ To Niti’s Capital A/c $\displaystyle 50,000$ To Aditi’s Capital A/c $\displaystyle 50,000$ (Premium for goodwill adjusted to sacrificing partners in sacrificing ratio $\displaystyle 1$:$\displaystyle 1$) Niti’s Capital A/c Dr. $\displaystyle 12,500$ Aditi’s Capital A/c Dr. $\displaystyle 12,500$ To Cash/Bank A/c $\displaystyle 25,000$ (One- fourth of the goodwill withdrawn by the partners)