X and Y are partners in a firm sharing profits in the ratio of 3:2. On 1st April, 2009, they admit Z as a new partner for 1/4th share in the profits. Z contributed the following assets towards his capital and for his share of goodwill: Stock Rs.60,000; Debtors Rs.80,000; Land Rs.1,00,000, Plant and Machinery Rs.40,000. On the date of admission of Z, the goodwill of the firm was valued at Rs.6,00,000. Record necessary Journal entries in the books of the firm on Z’s admission.
