15. Ramesh. Naresh and Suresh were partners in a firm sharing profits and losses in the
(Ans. New Ratio will be 2 : 1)
(C) Accounting Treatment of Premium of Goodwill
ratio of 5 : 3:2. Naresh retired and the new profit sharing ratio between Ramesh
and Suresh was 2 : 3. On Naresh's retirement, the premium for goodwill of the firm
was valued at $ 1.20.000. Pass necessary journal entry for the treatment of premium
for goodwill on the retirement of Naresh without opening goodwill premium for
account.
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