Question

Anu and Bala distributed profits and losses in the ratio 3:2 starting 1st April 2019, they accepted to distribute
profits evenly. Goodwill of the business was accounted for at 50,000. Prepare the journal for the accounting of
goodwill.
(a) When the goodwill is adjusted through Partners' Capital Account​

Answer 1

Answer:

Note:two entries that net effect is debit Bala's capital account by Rs-500and credit anu's capital account by Rs5000