X, Y and Z are partners sharing profits in the ratio of 5 : 4 : 1. It is now agreed that they will share future profits in the ratio of 3 : 3 : 4. Goodwill is valued at ₹ 1,00,000

X, Y and Z are partners sharing profits in the ratio of 5 : 4 : 1. It is now agreed that they will share future profits in the ratio of 3 : 3 : 4. Goodwill is valued at ₹ 1,00,000. You are required to pass a single journal entry for the treatment of goodwill.

[Ans. Debit Z by ₹ 30,000 and Credit X and Y by ₹ 20,000 and ₹ 10,000 respectively.]