Vanshika and Shikha were partners in a firm with capitals of ₹ $\displaystyle 1,00,000$ and ₹ $\displaystyle 80,000$ respectively. They admitted Nisha on 1st April, $\displaystyle 2022$ as a $\displaystyle 1$ new partner for share in the future profits of the firm. Nisha brought $\displaystyle 4$ ₹ $\displaystyle 90,000$ as her capital. Nisha aquired her share equally from Vanshika and Shikha. Calculate the value of goodwill of the firm and pass necessary journal entries on Nisha's admission, assuming that Nisha did not bring her share of goodwill premium in cash. Show the working clearly.

Calculation of Goodwill of the firm Total Capital of the Firm based on Nisha’s share = $\displaystyle 90,000$ x $\displaystyle 4$/$\displaystyle 1$ = ₹ $\displaystyle 3,60,000$ Actual capital of the Firm = $\displaystyle 1,00,000$+ $\displaystyle 80,000$ + $\displaystyle 90,000$ = ₹$\displaystyle 2,70,000$ Goodwill of the Firm = $\displaystyle 3,60,000$ - $\displaystyle 2,70,000$ = ₹$\displaystyle 90,000$ Calculation of Nisha’s share of goodwill premium= ₹$\displaystyle 90,000$ x $\displaystyle 1$/$\displaystyle 4$ = ₹$\displaystyle 22,500$ Books of Vanshika and Shikha JOURNAL Amount Amount Date Particulars LF Dr (₹) Cr (₹) Bank / Cash A/c Dr. $\displaystyle 90,000$ To Nisha’s Capital A/c $\displaystyle 90,000$ (Capital brought in by Nisha) ________________________________ Nisha’s Current A/c Dr. $\displaystyle 22,500$ To Vanshika’s Capital A/c $\displaystyle 11,250$ To Shikha’s Capital A/c $\displaystyle 11,250$ (Adjustment for goodwill premium not brought in by Nisha) ________________________________