Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Our platform connects you with professionals ready to provide precise answers to all your questions in various areas of expertise. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Q.12 X, Y and Z are partners in a firm sharing profits in the ratio of 3:2: 1. They decide that Z's
share would be 1/3 in future. For this purpose, goodwill of the firm is valued 60,000.
Pass necessary journal entry to give effect to the change.
(Ans. New ratio 6:4: 5, Sacrifice of X 3/30 and Y 2/30, Z's gain 5/30; Debit Z's
capital A/c 10,000 credit X 6,000 and Y4,000)
