Arjun, Bhim and Nakul are partners sharing profits and losses in the ratio of 14 : 5 : 6 respectively. Bhim retires and surrenders his 5/25th shares in favour of Arjun

Arjun, Bhim and Nakul are partners sharing profits and losses in the ratio of 14 : 5 : 6 respectively. Bhim retires and surrenders his 5/25th shares in favour of Arjun. The goodwill of the firm is valued at 2 years purchase of super profits based on average profits of last 3 years. The profits for the last 3 years are ₹ 50,000, ₹ 60,000 and ₹ 55,000 respectively. The normal profits for the similar firm are ₹ 30,000. Goodwill aleardy appears in the books of the firm at ₹ 75,000. The profit for the first year after Bhim’s retirement was ₹ 1,00,000. Give the necessary journal entries to adjust Goodwill and to distribute profits showing your workings clearly.