Q.P and Q share profits and losses in the ratio 3:2. They admit R for a 1/4th share, which he acquires entirely from P and Q in their old ratio. R brings in ₹60,000 as his capital and ₹20,000 in cash as his share of goodwill (premium). Pass journal entries in the books of the firm to record R's capital and goodwill, and its distribution between P and Q.

Since R takes his share from P and Q in their OLD ratio, the sacrificing ratio here is simply the same 3:2 — so the goodwill premium is also split 3:2.

R's total cash brought in (₹60,000 + ₹20,000 = ₹80,000) is debited to Cash/Bank, credited ₹60,000 to R's Capital A/c and ₹20,000 to Premium for Goodwill A/c. Since R acquires his share from P and Q in their old 3:2 ratio, that IS the sacrificing ratio, so the ₹20,000 premium is then transferred: P get …

Since R acquires his 1/4th share from P and Q in their OLD ratio (3:2), the sacrificing ratio is identical to the old ratio, 3:2 — this is the special case where the two ratios coincide.

Entry 1 — R brings in capital and goodwill premium in cash:

(Being capital of ₹60,000 and goodwill premium of ₹20,000 brought in by R in cash)

Entry 2 — Premium for Goodwill distributed to P and Q in the sacrificing ratio 3:2:

P's share = ₹20,000 × 3/5 = ₹12,000. Q's share = ₹20,000 × 2/5 = ₹8,000. (Check: ₹12,000 + ₹8,000 = ₹20,000, matching the full premium.)