Question

A, B, C and D are partners sharing profits in the ratio of 4 : 3 : 2 : 1. On the retirement of B, Goodwill was valued at ₹ 3,00,000. A, C and D decide to continue the firm sharing profits equally. Pass entries.

Answer 1

Journal
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	C’s Capital A/c       ...Dr.		40,000
	D’s Capital A/c       ...Dr.		70,000
	To A’s Capital A/c			20,000
	To B’s Capital A/c			90,000