Question

A ,B and C were partners sharing profit in the ratio of 3:2:1. The firm closes it's books on the 31st March every year . B died on the 30th June ,2018 .On his death, Goodwill of the firm was valued at ¥ 600000 B's share in profit or loss till date of death was to be calculated on the basis of previous year's profit which was¥ 1500000( Loss) .Pass necessary Journal entries for Goodwill and his share of loss.​

Answer 1

Explanation:

Profit, in accounting, is an income distributed to the owner in a profitable market production process. Profit is a measure of profitability which is the owner's major interest in the income-formation process of market production. There are several profit measures in common use.