Ajay, Vijay, Sanjay and Dhananjay are partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : $\displaystyle 1$ : 1. Vijay decided to retire from the firm. The Goodwill of the firm was valued at ₹ $\displaystyle 12,00$,000. Pass necessary journal entry for the treatment of Goodwill on Vijay's retirement without opening goodwill account.

Journal Date Particulars L.F Debit Credit . Amount Amount (₹) (₹) Ajay’s Capital A/c. Dr. $\displaystyle 2,00,000$ Sanjay’s Capital A/c Dr. $\displaystyle 1,00,000$ Dhanjay’s Capital A/c. Dr. $\displaystyle 1,00,000$ To Vijay’s Capital A/c. $\displaystyle 4,00,000$ (Vijay’s share of Goodwill adjusted in the capital accounts of Ajay, Sanjay and Dhanjay in gaining ratio)