A,B and C are partners sharing profits in the ratio of 5:3:2. B retires and Goodwill of the firm is valued on that date RO. 40,000. Pass necessary journal entries when goodwill already appears in the books at RO. 30,000.

a.

None of these journal entries are correct

b.

As Capital a/c Dr. 8,571; Cs capital a/c Dr. 3,429 To Bs Capital a/c 12,000

c.

Both the mentioned journal entries are correct

d.

As Capital a/c Dr.15,000; Bs Capital a/c Dr.9,000; Cs Capital a/c Dr.6,000 To Goodwill a/c 30,000