Mandeep, Vinod and Abbas are partners sharing profits and losses in the ratio of 3 : 2 : 1 . From 1st April, 2018, they decided to share profits and losses equally. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill shall be valued at three years' purchase of the average profit of last five years . The profits and losses of the past five years are:Profit—Year ended 31st March, 2014—₹ 1,00,000; 2015—₹ 1,50,000; 2017—₹ 2,00,000; 2018—₹ 2,00,000; Loss—Year ended 31st March, 2016—₹ 50,000.Pass the journal entries showing the working.

Mandeep, Vinod and Abbas are partners sharing profits and losses in th

1.	Mandeep, Vinod and Abbas are partners sharing profits and losses in the ratio of 3 : 2 : 1 . From 1st April, 2018, they decided to share profits and losses equally. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill shall be valued at three years' purchase of the average profit of last five years . The profits and losses of the past five years are:Profit—Year ended 31st March, 2014—₹ 1,00,000; 2015—₹ 1,50,000; 2017—₹ 2,00,000; 2018—₹ 2,00,000; Loss—Year ended 31st March, 2016—₹ 50,000.Pass the journal entries showing the working.
Answer» Mandeep, Vinod and Abbas are partners sharing profits and losses in the ratio of 3 : 2 : 1 . From 1st April, 2018, they decided to share profits and losses equally. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill shall be valued at three years' purchase of the average profit of last five years . The profits and losses of the past five years are: Profit $—$ Year ended 31st March, 2014 $—$ ₹ 1,00,000; 2015 $—$ ₹ 1,50,000; 2017 $—$ ₹ 2,00,000; 2018 $—$ ₹ 2,00,000; Loss $—$ Year ended 31st March, 2016 $—$ ₹ 50,000. Pass the journal entries showing the working.

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