Question

X, Y and Z were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Z retired and the new profit

sharing ratio between X and Y was 1 : 2. On Z’s retirement the goodwill of the firm was valued at `

30,000. Pass necessary journal entry for the treatment of goodwill on Z’s retirement.​

Answer 1

Answer:

x's a/c dr.

y's a/c dr.

to z's capital a/c