Question

a,b&c are sharing profits in the ratio of 4:3:2 goodwill appearing in the books at a value of 42000 pass the necessary journals entries

Answer 1

A's Capital A/c ...Dr. 18,666
B's Capital A/c ...Dr. 14,000
C's Capital A/c ...Dr. 9,334
To Goodwill A/c 42,000
(Being the existing value
of Goodwill written off
in the old ratio)