Question

Q.4 X, Y and Z are partners sharing profits and losses in the ratio of 5: 3 : 2, decided to share profits and losses equally with effect from 1st April, 2016. On that date, the goodwill appeared in the books at `12,000. But it was revalued at `30,000. Pass the necessary Journal entries.

Answer 1

goodwill a/c Dr 18000
to x's capital 9000
to y's capital 5400
to z's capital 3600