Retirement of partner problems
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A, B and C are three partners sharing profits in the ratio of 5 : 4 : 3 respectively. C retires and the goodwill of the firm is valued at Rs 60,000. Assuming that A and B agree to share future profits in the ratio of 7 : 5 respectively, pass an adjustment entry to credit retiring partner with his share of goodwill. Show calculations clearly.
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