A, B, C and D are partners in a firm sharing profits, in the ratio of 2 : 1 : 2 : 1. On the retirement of C, Goodwill was valued ₹ 1,80,000. A, B and d decide to share future profits equally. Pass the necessary Journal entry for the treatment of goodwill.
[Ans.: Gaining Ratio of A, B and D – 0 : 1 : 1. Dr. B’s Capital A.c and D’s Capital A/c by ₹ 30,000 each; Cr. C’s Capital A/c by ₹ 60,000.]
Solution :
