Anant, Gulab and Khushbu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. From 1.4.2014, they decided to share the profits equally, For the purpose the goodwill of the firm was valued at Rs. 2,40,000.
Pass necessary journal entry for the treatment of goodwill on change in the profit sharing ratio of Anant, Gulab and Khushbu.

Explanation

Working Note :
Old Ratio 5 : 3 : 2
New Ratio 1 : 1 : 1
`"Anant"" ": (5)/(10)-(1)/(3)=(15-10)/(30)=(5)/(30)` Sacrifice
`"Gulab"" ": (3)/(10)-(1)/(3) = (9-10)/(30)=(1)/(30)` Gain
`"Khushbu"" ": (2)/(10)-(1)/(3)=(6-10)/(30)=(4)/(30)` Gain