X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Goodwill is valued at ₹ 1,50,000. On Y’s retirement, X and Z agree to share profits equally.
Pass the necessary Journal entry for treatment of Y’s share of goodwill.
[Ans.: Only Z is gaining; Dr. Z’s Capital A/c and Cr. Y’s Capital A/c by 50,000.]
Solution :
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