Red, White and Blue are equal partners. White retires, his share of goodwill is ~ 18,000. The remaining partners have decided to continue the business sharing profits and losses in the ratio of 3 : 2. At present there is no goodwill in the Balance Sheet and in future goodwill is not to be shown in the Balance Sheet. Give Journal Entry.

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The journal entry to record the retirement of White and the recognition of his share of goodwill wou... View the full answer