Harish and Munish are partners in a firm sharing profits and losses in the ratio of 3:2. Rakesh is admitted into partnership for 1/3 share in profits. He brings in Rs. 50,000 as capital, but not in a position to bring any amount for his share of goodwill which has been valued at Rs. 15,000. Give necessary journal entry for recording goodwill, when there is no goodwill appearing in the books of the firm.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rakesh’s Current A/c Dr. 15,000, To Harish’s Capital A/c 9,000, To Munish’s Capital A/c 6,000
A new partner who cannot bring his share of goodwill in cash has that amount debited to his Current Account, and the sacrificing partners are credited in their sacrificing ratio. Goodwill does not appear in the books, so nothing has to be written off first.
Nothing is said about how Rakesh gets his share, so Harish and Munish sacrifice in their old ratio, 3 : 2
Harish is credited with Rs. 15,000 × 3/5 = Rs. 9,000
Munish is credited with Rs. 15,000 × 2/5 = Rs. 6,000
The Rs. 50,000 he brings as capital is a separate entry (Bank A/c Dr., To Rakesh’s Capital A/c).
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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