**Journal Entries for Admission of C and D as Partners**

1. **Calculation of New Ratio:**
- A and B are sharing profits in the ratio of 5:2.
- The new ratio agreed upon is 3:2:1:1.
- To calculate the new ratio, we need to find the total of the old ratios: 5 + 2 = 7.
- Now, divide the new ratios by the total of the old ratios and multiply by 100 to get the percentage:
- A: (3/7) * 100 = 42.86%
- B: (2/7) * 100 = 28.57%
- C: (1/7) * 100 = 14.29%
- D: (1/7) * 100 = 14.29%

2. **Journal Entry for Goodwill:**
- Goodwill is valued at $1,40,000.
- Since C and D are being admitted as partners, the existing partners need to give their share of goodwill to the new partners based on the new ratio.
- So, A and B will receive their share of goodwill from C and D.
- The journal entry to record the transfer of goodwill from A and B to C and D will be:
- C and D's Capital A/c Dr. $84,000 (42.86% of $1,40,000)
- To A's Capital A/c $60,000 (42.86% of $1,40,000)
- To B's Capital A/c $24,000 (28.57% of $1,40,000)

3. **Journal Entry for C's Capital Contribution:**
- C brings $80,000 in cash and machinery worth $40,000 for his share of capital and premium.
- The journal entry to record C's capital contribution will be:
- Cash A/c Dr. $80,000
- Machinery A/c Dr. $40,000
- To C's Capital A/c $1,20,000 (capital and premium)

4. **Journal Entry for D's Capital Contribution:**
- D brings $20,000 as cash and furniture worth $80,000 towards capital and premium.
- The journal entry to record D's capital contribution will be:
- Cash A/c Dr. $20,000
- Furniture A/c Dr. $80,000
- To D's Capital A/c $1,00,000 (capital and premium)

5. **Journal Entry to Adjust A's Capital Account:**
- A's share of goodwill was transferred to C's Capital A/c.
- The journal entry to adjust A's capital account will be:
- C's Capital A/c Dr. $60,000 (share of goodwill transferred to C)
- To A's Capital A/c $60,000 (reduction in capital)

6. **Journal Entry to Adjust B's Capital Account:**
- B's share of goodwill was transferred to C's Capital A/c.
- The journal entry to adjust B's capital account will be:
- C's Capital A/c Dr. $24,000 (share of goodwill transferred to C)
- To B's Capital A/c $24,000 (reduction in capital)

7. **Final Capital Accounts:**
- The new capital