A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2. B retires and the goodwill is valued at Rs 1,08,000. A and C decided to share future profits and losses in the ratio of 5 : 3. Record necessary journal entry.

A's capital A/c              Dr Rs 19,500

C's capital A/c              Dr Rs 16,500

             To B's capital A/c Rs 36,000

The correct answer is Option (4)-

A's capital A/c              Dr Rs 19,500

C's capital A/c              Dr Rs 16,500

             To B's capital A/c Rs 36,000

Old ratio = 4:3:2
B retires and new ratio = 5:3

Gain of A = 5/8 - 4/9
              = (45-32)/72
              = 13/72

Gain of C = 3/8 - 2/9
               = (27-16)/72
              = 11/72
Gaining ratio is 13/72 : 11/72 or 13:11

Goodwill = 108000
B's share in goodwill = 108000 x 3/9
                              = 36000
This 36000 will be given by B to A & C in gaining ratio.
A will have = 36000 x 13/24
                = 19500
B will have = 36000 x 11/24
                = 16500

So, journal entry will be-

A's capital A/c    Dr Rs 19,500
C's capital A/c    Dr Rs 16,500
     To B's capital A/c Rs 36,000