Multiple choice

X, Y and Z are partners sharing profits and losses in the ratio 2 : 2 : 1. Y retires on 31-3-2015 and the goodwill is valued at Rs. 60,000. By what amount are the accounts debited or credited, if only the share of Y is recorded?

  1. Goodwill A/c Debited with Rs. 12,000, Y's A/c credited with Rs. 12,000

  2. Goodwill A/c Debited with Rs. 24,000, Y's A/c credited with Rs. 24,000

  3. Y's A/c debited with Rs. 12,000, Goodwill A/c credited with Rs. 12,000

  4. Y's A/c debited with Rs. 24,000, Goodwill A/c credited with Rs. 24,000
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D Correct answer

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