Practicing Success
A, B & C are partners sharing profits and losses in the ratio of 4:3:2. B decides to retire and the goodwill of the firm is valued at ₹72000 on the retirement. Remaining partners decide to share the future profits and losses in ratio of 5:3. |
Pass the journal entry for goodwill. |
A's Capital A/c Dr... ₹13000 A's Current A/c Dr... ₹13000 A's Capital A/c Dr... ₹13000 B's Capital A/c Dr... ₹13000 |
A's Capital A/c Dr... ₹13000 |
Old ratio is 4:3:2 |