Answer:
The journal entry to change the firm goodwill at 300000 is:
R's Capital A/C Dr. 60000
To P's Capital A/C 120000
To Q's Capital A/C 120000
Explanation:
Step 1: Initially, P, Q, and R share the profit equally, so each of them has a 1/3 share of the profit.
Step 2: After the change, R will get 1/5th share of the profit, and P and Q will share equally. This means R's share will be 1/5, and P and Q will share 4/5 equally, which is 2/5 each.
Step 3: To calculate the new share values, we need to find the total share value. The total share value is 1/3 + 1/3 + 1/3 = 1. After the change, the total share value will be 1/5 + 2/5 + 2/5 = 1.
Step 4: Now, we can calculate the new share values. R's new share value is (1/5 * 300000) = 60000. P and Q's new share value is (2/5 * 300000) = 120000 each.
Step 5: To pass the journal entry, we debit R's capital account with 60000, and credit P and Q's capital accounts with 120000 each.
