Question

X y and z are partners sharing profits and losses in the ratio 2:2:1. Y retires from the firm.On the date of retirement goodwill appeared in the books at rs 25000

Answer 1

Answer:

Old ratio=2:2:1

New ratio=2:1

Gaining ratio=New ratio-Old ratio

X =2/3-2/5

=10-6/15=4/15

Z =1/3-1/5

=5-3/15=2/15

x's capital A/C Dr

z's capital A/C Dr

To y's capital A/C 10,000(25000×2/5)

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