Practicing Success
A, B & C are partners sharing profits and losses in the ratio of 3:2:1. B decides to retire and the goodwill of the firm is valued at ₹60000 on the retirement. The remaining partners decide to share the future profits and losses equally. |
Pass the journal entry for treatment of B's share of goodwill. |
A's Capital A/c Dr... ₹20000 A's Capital A/c Dr... ₹20000 C's Capital A/c Dr... ₹20000 B's Capital A/c Dr... ₹20000 |
C's Capital A/c Dr... ₹20000 |
Old ratio 3:2:1 |