Question

A,B and C are partners sharing profit and losses in the ratio of 2:2:1 decided to retire And on this date goodwill of the firm is valued at Rs 2,00,000. Pass entries when goodwill account is already appearing in the books at Rs 1,50,000.
Explain it. Please give me accurate answer.​

Answer 1

Answer:

This is the answer

Explanation:

Sharing of profit ( Old Ratio) = 15000 : 10000 : 5000

Sharing of profit ( New Ratio) = 12000 : 12000 : 6000

Difference - A Cr. 3000 ; B Dr. 2000 ; C Dr. 1000