Aamir, Bashir and Chirag were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 3$ : 2. Chirag retired. Aamir and Bashir decided to share profits and losses in future in the ratio of $\displaystyle 1$ : 2. On the day of , goodwill of the firm was valued at ₹ $\displaystyle 5,40$,000. Calculate gaining ratio and pass necessary journal entry to record the retirement.

Gain = New share – Old Share Aamir’s Gain= $\displaystyle 1$/ $\displaystyle 3$ - $\displaystyle 3$/$\displaystyle 8$ = -$\displaystyle 1$/$\displaystyle 24$ (sacrifice) Bashir’s Gain = $\displaystyle 2$/$\displaystyle 3$ - $\displaystyle 3$/$\displaystyle 8$ = $\displaystyle 7$/$\displaystyle 24$ (gain) $\displaystyle 5$ In the books of Aamir, Bashir and Chirag JOURNAL Date Particulars L.F. Dr. Amount Cr. Amount (₹) (₹) Bashir’s Capital A/c Dr. $\displaystyle 1,57,500$ To Aamir’s Capital A/c $\displaystyle 22,500$ To Chirag’s Capital A/c $\displaystyle 1,35,000$ (Goodwill treated on Chirag’s retirement without opening Goodwill account)