A B and C are partnerin a firm sharing profit and loss in the ratio of 1:3:2. they decided that with effect from 1 jan2003 ,they will share profit and loss in the ratio 4:6:5.for this purpose the goodwill of the firm is valued at the total of preceding 3 years profit .the profit were ;
1998 40000
1999 10000 loss
2000 80000 loss
2001 120000
2002 140000
reserve and profit appeared in the balance sheet at 40000 and 30000 respectively .partner neither want to show goodwill in the books nor want to distribute the reserve and profit appearing in the balance sheet .pass a single journal entry to record the change
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