A B and C are sharing profits in the ratio of 3 2 1 B retires and on the day of B rsquo s retirement...........

A, B and C are sharing profits in the ratio of 3 : 2 : 1. B retires and on the day of B’s retirement Goodwill is valued at Rs60,000. A and C decided to share future profits in the ratio of 3 : 2. Journal entry will be :

A’s Capital A/c Dr. 18,000 C’s Capital A/c Dr. 42,000 To B’s Capital A/c 60,000

A’s Capital A/c Dr. 6,000 C’s Capital A/c Dr. 14,000 To B’s Capital A/c 20,000