Diksha, Krish and Rajan were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 2$ : 1. On 1st April, $\displaystyle 2024$, Rajan decided to retire from the firm. On that day, the balance in his capital account after making the necessary adjustments on account of reserves, revaluation of assets and reassessment of liabilities was $\displaystyle 1,80$,000. Diksha and Krish agreed to pay him $\displaystyle 2,20,000$ in full settlement of his claim. Calculate Radian's share of goodwill and pass the necessary journal entries for the same.

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)