X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2 . From 1st April, 2018, they decided to share profits and losses equally. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill should be valued at two years purchase of the average profit of the preceding five years . The profits and losses of the preceding years are:
You are required to calculate goodwill and pass journal entry.
