Dear Student Amar's Capital A/c (70,000 x 3/7) Dr 30,000 To Ram's Capital A/c (70,000 x 1/7) 10,000 To Mohan's Capital A/c (70,000 x 1/7) 10,000 To Sohan's Capital A/c (70,000 x 1/7) 10,000 (Being on Retirement on Sohan , Adjustment of goodwill is done on the basis of share gained or sacrificed by partners) Calculation of Gaining or Sacrificing Partners Amar Ram Mohan Sohan New Ratio 5/7 1/7 1/7 0 Less : Old Ratio 2/7 2/7 2/7 1/7 3/7 - 1/7 - 1/7 - 1/7 Gaining Sacrificing Sacrificing Sacrificing Regards

answer plz
answer plz Amar; Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 2 2 2 : 1 On 31 st January 2017 Sohan retired On Sohan's retirement the goodwill of the firm was valued at Rs 70,000. The new profit sharing ratio between Amar, Ram and Mohan was agreed as 5:1:1 Showing your working notes clearly, pass necessary Journal Entry for the treatment of goodwill in the books of the firm on Sohan•s retirement

Dear Student

Amar's Capital A/c (70,000 x 3/7)	Dr.	30,000
To Ram's Capital A/c (70,000 x 1/7)			10,000
To Mohan's Capital A/c (70,000 x 1/7)			10,000
To Sohan's Capital A/c (70,000 x 1/7)			10,000
(Being on Retirement on Sohan , Adjustment of goodwill is done on the basis of share gained or sacrificed by partners)

Calculation of Gaining or Sacrificing Partners
	Amar	Ram	Mohan	Sohan
New Ratio	5/7	1/7	1/7	0
Less : Old Ratio	2/7	2/7	2/7	1/7
	3/7	- 1/7	- 1/7	- 1/7
	Gaining	Sacrificing	Sacrificing	Sacrificing

Regards

-1

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