Question

P, Q and R were partners in a firm sharing profits in `5:3:2` ratio. They decided to share the future profits in `2:3:5.` For this purpose the goodwill of the firm was valued at Rs 1,20,000. In adjustment entry for the treatment of goodwill due to change in the profit sharing ratio.

Answer 1

Explanation:

sacrificing partner always credited whereas gaining partner always debited and if out comes in 0 than no treatment