A and B are partners sharing profit and losses equally with capitals of Rs.7000 each. They admit C as a partner with 1/4th share in the profits of the firm. C brings Rs.8000 as his share of capital. The necessary journal entry to record goodwill be A B C D As capital a/c Dr. 5,000 Bs capital a/c Dr. 5,000 To Goodwill a/c 10,000 Goodwill a/c Dr. 10,000 To As capital a/c To Bs capital a/c 5,000 5,000 C's capital a/c Dr. 10,000 To As capital a/c To Bs capital a/c 5,000 5,000 C's capital a/c Dr. 2,500 To A's capital a/c To B's capital a/c 1,250 1,250