X and Y were partners sharing profits in the ratio of 2 : 1. With effect from 1st April, 2016, they decided to share profits in the ratio of 3 : 1. For this purpose the goodwill of the firm is valued at Rs. 1,80,000. Give the necessary journal entry.

Explanation

Debit X by Rs. 15,000 and Credit Y by Rs. 15,000.