Saved Bookmarks
| 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 at30,000. Pass necessary journal entry for the treatment of goodwill on Z's retirement. |
|
Answer»
Goodwill =Rs.30,000
old ratio (1 : 2) X Y Z 15,000 10,000 5,000 10,000 20,000 - 5,000 (Cr) 10,000 (Dr) 5,000 (Cr) 30,000 30,000 ∴ Journal entry Y's capital a/c Dr 10,000 To X's capital a/c 5000 To Z's capital a/c 5000
|
|