Q4: Following is the Balance Sheet of Allen and Miller who shared profit and losses in the ratio of 3:2. Allen's Capital Miller's Capital Sundary creditors Rs. 30000 25000 10000 Goodwill Sundry Assets Cash Rs. 10000 50000 5000 Total 65000 Total 65000 Boling was admitted as partner on the date of Balance Sheet. The new ratio of sharing profits and losses will be 5:3:1. Boling pays Rs 20000 as capital but nothing for goodwill which has to be valued on the basis of 2 year's purchases of 3 years profits. The profits for 3 years were Rs 10000, Rs 12000 and Rs 16000 Instructions: Pass the necessary journal entries under various methods of treatment of Goodwill