Q On the admission of Rao, goodwill of Murty and Shah is valued at 30,000. Rao is to get 1/4th share of profits. Previously Murty and Shah shared profits in the ratio of 3 : 2. Rao is unable to bring amount of goodwill. Give Journal entries in the books of Murty and Shah when:

1. there is no Goodwill Account and
2. Goodwill appears in the books at 10,000