Akshay, Baljeet and Cizan were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 3$ : 3. Akshay retired. Baljeet and Cizan decided to share profits and losses in future in the ratio of $\displaystyle 2$ : 1. On the day of Akshay's retirement, goodwill of the firm was valued at ₹ $\displaystyle 2,70$,000. Calculate gaining ratio and pass necessary journal entry to record the treatment of goodwill (without opening goodwill account), on Akshay's retirement.

Gain = New share – Old Share Baljeet’s Gain= $\displaystyle 2$/$\displaystyle 3$ - $\displaystyle 3$/$\displaystyle 8$ = $\displaystyle 7$/$\displaystyle 24$ (gain) Cizan’s Gain = $\displaystyle 1$/$\displaystyle 3$ - $\displaystyle 3$/$\displaystyle 8$ = -$\displaystyle 1$/$\displaystyle 24$ (sacrifice) $\displaystyle 5$ In the books of Akshay, Baljeet and Cizan Journal Date Particulars L.F. Dr. Amount Cr. Amount (₹) (₹) Baljeet’s Capital A/c Dr. $\displaystyle 78,750$ To Akshay’s Capital A/c $\displaystyle 67,500$ To Cizan’s Capital A/c $\displaystyle 11,250$ (Goodwill treated on Akshay’s retirement without opening Goodwill account))