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X, Y and Z were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Z retired and the new profitsharing 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. |
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Answer» y's a/c dr. |
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