Question

X and Y are partners in 3:2 ratio. Z is admitted and brings ₹1,00,000 as capital and ₹20,000 as goodwill. Goodwill is not to be retained in books. Old partners share goodwill in their old ratio. Pass the necessary adjustment.

A X – ₹10,000, Y – ₹10,000
B X – ₹8,000, Y – ₹12,000
C X – ₹12,000, Y – ₹8,000
D Z – ₹20,000
E No adjustment required
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