X, Y and Z are partners sharing profits ...

X, Y and Z are partners sharing profits in the ratio of 5 : 4 : 1. It is now agreed that they will share future profits in the ratio of 3 : 3 : 4. Goodwill is valued at Rs. 1,00,000. You are required to pass a single journal entry for the treatment of goodwill.

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Debit Z by Rs. 30,000 and Credit X and Y by Rs. 20,000 and Rs. 10,000 respectively.

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