Q.Sam and Jose are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April 2018, they admitted Joel as a partner. On the date of Joel's admission, goodwill appeared in the books of the firm as ₹ 20,000. Assuming that the accounts are maintained on Fluctuating Capital method, pass the necessary journal entries if the partners decided to :

Existing goodwill is written off among the old partners in their old ratio (3 : 2) by debiting their capital accounts and crediting the Goodwill account. Concept When goodwill already appears in the books at the time of a new partner's admission, it must be written off among the old partners in their old profit-sharing ratio (Sam : Jose = 3 : 2), because it belongs to them. Under the fluctuating capital method, this is done through the partners' capital accounts. (a) Write off the entire ₹20,000 Shared 3 : 2 → Sam = 20,000 × 3/5 = ₹12,000; Jose = 20,000 × 2/5 = ₹8,000. | Date | Particulars | L.F. | Dr (₹) | Cr (₹) | | --- | --- | --- | --- | --- | | 1.4.2018 | Sam's Capital A/c Dr | | 12,000 | | | | Jose's Capital A/c Dr | | 8,000 | | | |     To Goodwill A/c | | | 20,000 | | | (Being existing goodwill written off among old partners in old ratio 3 : 2) | | | | (b) Write off ₹10,000 of the existing goodwill Shared 3 : 2 → Sam = 10,000 × 3/5 = ₹6,000; Jose = 10,000 × 2/5 = ₹4,000. | Date | Particulars | L.F. | Dr (₹) | Cr (₹) | | --- | --- | --- | --- | --- | | 1.4.2018 | Sam's Capital A/c Dr | | 6,000 | | | | Jose's Capital A/c Dr | | 4,000 | | | |     To Goodwill A/c | | | 10,000 | | | *(Being ₹10,000 of existing goodwill written …