Bharat and Ishu were partners in a firm sharing profits and losses in the ratio of 4 : 1. Rishab was admitted into partnership for \(\frac{1}{4}\) share in the profits of the firm. Goodwill of the firm was valued at 4,00,000. Rishab brought 2,00,000 as his capital and 60,000 out of his share of goodwill premium in cash. At the time of Rishab’s admission, goodwill was appearing in the books of the firm at 50,000.
Pass necessary journal entries for the above transactions in the books of the firm on Rishab’s admission.