A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. B retired and the new profit-sharing ratio between A and C was 2 : 1. On B's retirement, the goodwill of the firm was valued at Rs. 90,000. Pass necessary Journal entry for the treatment of goodwill on B's retirement.

A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. B retired and the new profit-sharing ratio between A and C was 2 : 1. On B’s retirement, the goodwill of the firm was valued at Rs. 90,000. Pass necessary Journal entry for the treatment of goodwill on B’s retirement.

Post category:Accountancy
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SOLUTION

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