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Avya, Divya and Kavya were equal partners. They decided to change the profit sharing ratio to 4 : 3 : 2. For this purpose, the goodwill of the firm was valued at ₹ 90,000.

The Journal entry for the treatment of Goodwill on change in profit sharing ratio will be:

a)

Kavya’s Capital A/c Dr. ₹ 10,000
To Avya’s Capital A/c ₹ 10,000

b)

Divya’s Capital A/c Dr. ₹ 10,000
To Avya’s Capital A/c ₹ 10,000

c)

Avya’s Capital A/c Dr. ₹ 90,000
To kavya’s Capital A/c ₹ 90,000

d)

Avya’s Capital A/c Dr. ₹ 10,000
To Kavya’s Capital A/c ₹ 10,000

 

Anurag Pathak Changed status to publish May 5, 2023
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