Amar, Ali and Ajay were partners in a firm sharing profits and losses in the ratio of 2: 2: 1. On 1st April, 2024, Ajay decided to retire from the…

Calculation of Ajay’s share of Goodwill:- (₹) Amount agreed to be paid in full settlement = $\displaystyle 3,00,000$ Less: Ajay’s share (after all adjustments) = ($\displaystyle 2,64,000$) $\displaystyle 36,000$ In the books of Amar, Ali and Ajay Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2024$ Amar’s Capital A/c Dr. $\displaystyle 18,000$ April Ali’s Capital A/c Dr. $\displaystyle 18,000$ $\displaystyle 01$ To Ajay’s Capital A/c $\displaystyle 36,000$ (Ajay’s share of goodwill adjusted in continuing partners’ capital account in their gaining ratio)