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(Treatment of goodwill) A and B are partners sharing profits and losses in the ratio of 3:5 with capitals $6,000 and $10,000 respectively. They

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(Treatment of goodwill) A and B are partners sharing profits and losses in the ratio of 3:5 with capitals $6,000 and $10,000 respectively. They admit C in partnership and give him 1/10th share in future profits. C brings $5,000 as his capital and $4,000 as goodwill. The amount of goodwill is immediately withdrawn by old partners in cash. Draft journal entries and show the capital accounts of all the partners.

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