1.

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.​

Answer»

ANSWER:

X's a/c DR.

y's a/c dr.

to Z's CAPITAL a/c



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