Question

Q.No.:32
P,Q and Rare partners sharing profits and losses in the ratio
5:3:2. From 1st January,2006, they decide to share profits
and losses in equal
proportions. The partnership deed provides that in the event
of any change in profit sahring ratio, the goodwill should be
valued at three years' purchase of the average of five years'
profits. The profits and losses of the preceding five years are:
PROFITS: 2001 - Rs 60,000
2002 - Rs 1,50,000
2003- Rs 1,70,000
2004 - Rs 1,90,000
LOSS:.2005 - Rs 70,000
Give the necessary journal entry to record the above change.​

Answer 1

Answer:

60, 000 +1,50,000 +1,70,000+1,90,000+70,000

Explanation:

$640000$