A and B are partners sharing profit in the ratio of 3 ∶ 2. Their books show goodwill at Rs. 2,000. C is admitted with \(\frac{1}{4}\)th share of profits and brings in Rs. 10,000 as his capital but is not able to bring in cash for his share of goodwill of Rs. 3,000. Which of the following accounting treatment is correct for writing off goodwill appearing in the books?
1
Debit A's Capital A/c by Rs. 1,200; Debit B's Capital A/c by Rs. 800; credit goodwill A/c by Rs. 2,000.
2
Credit A's Capital A/c by Rs. 2,000; Debit B's Capital A/c by Rs. 1,200; Debit goodwill A/c by Rs. 800.
3
Debit Goodwill A/c by Rs. 2,000; Credit A's Capital A/c by Rs. 1,200; Credit B's capital A/c by Rs. 8,00.
4
None of these