Keshav, Nirmal and Pankaj are partners sharing profits and losses in the ratio of 4 : 3 : 2. Nirmal retires and the goodwill is valued at Rs. 72,000. Keshav and Pankaj decided to share future profits and losses in the ratio of 5 : 3. What will be the net effect on Keshav`s and Pankaj's capital account?
Rs 13,000 & Rs 11,000
Keshav | Nirmal | Pankaj | |
Before retirement(4:3:2) | 32,000 | 24,000 | 16,000 |
After retirement(5:3) | 45,000 | 27,000 | |
Net Effect | 13,000 (Dr) | 11,000 (Dr) |