Ashok, Rakesh and Mukesh were partners sharing profits and losses in the ratio of 2 : 2 : 1. On 1st April, 2023, their goodwill was valued at ₹ 3,00,000, there being no account for it in the books

Ashok, Rakesh and Mukesh were partners sharing profits and losses in the ratio of 2 : 2 : 1. On 1st April, 2023, their goodwill was valued at ₹ 3,00,000, there being no account for it in the books. On this date Rakesh retired. Pass the Journal Entry to record goodwill.

[Ans. Rakesh’s share of goodwill will be adjusted to the Capital A/cs of Ashok and Mukesh in their Gaining Ratio 2 : 1.]