X, Y and Z were partners sharing profits in ratio of 5 : 3 : 2. Goodwill does not appear in the books, but it is agreed to be worth Rs 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital account in ratio : (a) 1/2 : 1/2 (b) 2 : 3 (c) 3 : 2(d) None of these

X, Y and Z were partners sharing profits in ratio of 5 : 3 : 2. Good

1.	X, Y and Z were partners sharing profits in ratio of 5 : 3 : 2. Goodwill does not appear in the books, but it is agreed to be worth Rs 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital account in ratio : (a) 1/2 : 1/2 (b) 2 : 3 (c) 3 : 2(d) None of these
Answer» Correct answer is (b) 2 : 3