X, Y and Z are partners sharing profits equally. They decided that in future Z will get 1/5th share in profits. On the day of change, firm’s goodwill is valued at ₹ 30,000

X, Y and Z are partners sharing profits equally. They decided that in future Z will get 1/5th share in profits. On the day of change, firm’s goodwill is valued at ₹ 30,000. Give Journal entry arising on account of change in Profit-sharing Ratio.

[Ans. Dr. X’s Capital A/c by ₹ 2,000; Y’s Capital A/c by ₹ 2,000; Cr. Z’s Capital A/c by ₹ 4,000.]