Hari, Ram and Shyam who were sharing profits and losses in the ratio of 5 : 3 : 2, decide to share future profits and losses in the ratio of 2 : 2 : 1. Goodwill of the firm is valued at ₹ 1,00,000. Goodwill existing in the books is ₹ 40,000. Show the necessary accounting treatment by raising Goodwill Account.
Hari, Ram and Shyam who were sharing profits and losses in the ratio of 5 : 3 : 2, decide to share future profits and losses in the ratio of 2 : 2 : 1.
Goodwill of the firm is valued at ₹ 1,00,000. Goodwill existing in the books is ₹ 40,000.
Show the necessary accounting treatment by raising Goodwill Account.
Anurag Pathak Changed status to publish April 28, 2023
