A, B and C are partners in a firm sharing profits in the ratio of 5 : 3 : 2. A retires and his share is taken up by B and C equally. Find the new profit sharing ratio and the gaining ratio.

A, B and C are partners in a firm sharing profits in the ratio of 5 : 3 : 2. A retires and his share is taken up by B and C equally. Find the new profit sharing ratio and the gaining ratio.

The goodwill of the firm is valued at ₹ 2,00,000. No goodwill account appears in the books. Pass necessary journal entry for recording the goodwill in the above mentioned case.