Aby, Suby and Minu are partners sharing profits in the ratio of 5:3:2. Minu retired on 31.09.06. The capital account balance and share of reserve due to Minu together amounted to Rs. 1,80,000. But Aby and Suby agreed to pay him Rs. 2,40,000. The new profit sharing ratio of Aby and Suby have been fixed at 3:2.
1. Why has Minu been paid over and above the actual amount due to him?
2. Give a journal entry to record this through capital a/c adjustments