devarshi-dt-logo

Question:

Neetu, Meentu and Teetu were partners in a firm. On 1st January, 2018, Meetu retired. On Meetu's retirement the goodwill of the firm was valued at Rs.4,20,000. Pass necessary journal entry for the treatment of goodwill on Meetu's retirement.

Solution:

Goodwill A/c Dr. 4,20,000
To Neetu's capital A/c 1,40,000
To Meentu's capital A/c 1,40,000
To Teetu's capital A/c 1,40,000