Question

Mayank, Harshit and Rohit were partners in a firm sharing profits in the ratio of 5:3:2. Harshit retired and goodwill is valued at Rs 60000. Mayank and Rohit decided to share future profits in the ratio 2:3. Pass necessary journal entry for treatment of goodwill. 

Answer 1

Rohit’s capital A/C Dr.	24000
To Mayank’s capital A/C		6000
To harshit’s Capital A/C		18000
(Adjustment Entry for treatment of goodwill in gaining ratio.)