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Surender, Ramesh, Naresh and Mohan are partners in a firm sharing profits in 2: 1 : 2 : 1 ratio. On the retirement of Naresh, the Goodwill was valued at ₹ 72,000. - Accounts

Question

Surender, Ramesh, Naresh and Mohan are partners in a firm sharing profits in 2: 1 : 2 : 1 ratio. On the retirement of Naresh, the Goodwill was valued at ₹ 72,000. Surender, Ramesh and Mohan decided to share future profits equally. Pass the necessary journal entry for the treatment of goodwill.

Journal Entry

Solution

Journal
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	Ramesh’s Capital A/c ...Dr.		12,000
	Mohan’s Capital A/c ... Dr.		12,000
	To Naresh’s Capital A/c			24,000
	(Being Naresh share of goodwill adjusted to the accounts of continuing partners in their gaining ratio 0 : 1 : 1)