X and Y are the partners in a firm. They admitted Z for 1/4th share in the profit. At the admission of Z, X and Y sacrificed in the ratio 3:2. Firm's goodwill was valued at ₹4,00,000. Z contributed following assets towards his capital and for his share of goodwill:

Land - ₹1,00,000
Pant and Machinery - ₹1,50,000

What will be the journal entry?

Land A/c            Dr.    ₹1,00,000
P & M A/c           Dr.    ₹1,50,000
   To Z's Capital A/c               ₹1,50,000
   To Premium for Goodwill    ₹1,00,000
(Contribution by Z for his capital and goodwill)

The correct answer is option 1- 
Land A/c            Dr.    ₹1,00,000
P & M A/c           Dr.    ₹1,50,000
   To Z's Capital A/c               ₹1,50,000
   To Premium for Goodwill    ₹1,00,000
(Contribution by Z for his capital and goodwill)

Goodwill of the firm = ₹4,00,000
Premium for goodwill of Z = 4,00,000*1/4
                                         = 1,00,000

Capital = Total assets - Premium for goodwill 
            = 2,50,000 - 1,00,000
            = 1,50,000

JOURNAL ENTRY FOR THIS-

Land A/c    Dr       ₹1,00,000
P & M A/c   Dr       ₹1,50,000
   To Z's Capital A/c               ₹1,50,000
   To Premium for Goodwill    ₹1,00,000
(Contribution by Z for his capital and goodwill)