X, Y and Z were partners sharing profits in the ratio of 5:3:2. Goodwill does not appear in the books but it is agreed to be worth 1,00,000 Rs.. X retires from the firm and Y and Z decide to share profits equally. X’s share of goodwill will be debited to Y’s and Z’s Capital A/cs in………ratio:
A. 12:12
B. 2:3
C. 3 : 2
D. None of these
Answer:B
X, Y and Z were partners sharing profits in the ratio of 5:3:2. Goodwill does not appear in the books but it is agreed to be worth 1,00,000 Rs.. X retires from the firm and Y and Z decide to share profits equally. X’s share of goodwill will be debited to Y’s and Z’s Capital A/cs in………ratio:
A. 12:12 B. 2:3 C. 3 : 2 D. None of these