X, Y and Z are the partners in a firm sharing profits and losses in the ratio of2 : 2 : 1. On April 1, 2012, X retires from the firm. On that date, the goodwill of the firm appearing in the books is Rs 75,000. Y and Z decided to share future profits and losses in the ratio of1 : 2. Pass the necessary Journal entries.

Journal

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

X’s Capital A/c

Dr.

30,000

Y’s Capital A/c

Dr

30,000

Z’s Capital A/c

Dr

15,000

         To Goodwill A/c

75,000

(Existing goodwill is written off)

Journal

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

Z’s capital A/c

Dr.

35,000

To X’s Capital A/c

30,000

To Y’s Capital A/c

5,000

(Goodwill is adjusted through partner’s capital account)