42.3 Black and Smart are in partnership, sharing profits and losses equally. They decide to admit King. By agreement, goodwill valued at 40,000 is to be introduced into the business books, King is required to provide capital equal to that of Smart after she has been credited with her share of goodwill. The new profit sharing ratio is to be 8:3:5 respectively for Black, Smart and King. 544 Chapter 42 Goodwill for sole traders and partnerships The balance sheet before admission of King showed: Fixed and current assets (other than cash) 160,000 Cash 1,000 161,000 Current liabilities (41,000) 120,000 Capital Black 70,000 Capital Smart 50,000 120,000 Show: (a) Journal entries for admission of Smart. (b) Opening balance sheet of new business. (o) Journal entries for writing off the goodwill which the new partners decided to do soon after the start of the new business