Question

0.23. 1. B and were partners sharing profits and losses in the ratio of 7:3:2.
From ist April 2015, they decided to share profits and losses in the ratio of 8:4:3
Goodwill is to be valued at the average of three year's profits preceding the date of
changes in profit sharing ratio The profits for the years ending 31st March 2012, 2013,
2014 and 2015 were 52,000, 148,000, 60,000 and 90,000 respectively. Give the
necessary journal entry​

Answer 1

Explanation:

ANSWER

Profit and Loss A/c..... Dr. 150000

To X's Capital A/c 90000

To Y's Capital A/c 60000

(Being profit distributed in old ratio)