X, Y, and Z were partners sharing profits in the ratio of 5:3:2. Goodwill does not appear in the books but it is agreed to be worth ₹1,00,000. X retires from the firm and Y and Z decide to share profits equally. X's share of goodwill will be debited to Y's and Z's Capital A/cs in which ratio?
Answer & explanation
Correct answer: option 2
Gain of Y = 1/2-3/10
= 2/10
Gain of Z= 1/2-2/10
= 3/10
Gaining Ratio = 2:3
The goodwill will be debited to remaining partner's account in GR.