Diksha, Krish and Rajan were partners in a firm sharing profits and losses in the ratio of 3: 2: 1. On 1st April, 2024, Rajan decided to retire from…

Calculation of Rajan’s share of Goodwill:- (₹) Amount agreed to be paid in full settlement = $\displaystyle 2,20,000$ Less: Rajan’s share (after all adjustments) = ($\displaystyle 1,80,000$) $\displaystyle 40,000$ In the books of Diksha, Krish and Rajan Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2024$ Diksha’s Capital A/c Dr. $\displaystyle 24,000$ April Krish’s Capital A/c Dr. $\displaystyle 16,000$ $\displaystyle 01$ To Rajan’s Capital A/c $\displaystyle 40,000$ (Rajan’s share of goodwill adjusted in continuing partners’ capital account in their gaining ratio)