Maki, Mamta and Monika are partners in a firm, sharing profits in the ratio of $\displaystyle 4$:$\displaystyle 3$ :2. Monika retired and her capital after making adjustments for reserves and revaluation of assets and reassessment of liabilities was ₹ $\displaystyle 95$,000. Mahi and Mamta agreed to pay $\displaystyle 1,09,000$ in full settlement of her claim. Pass necessary journal entries for treatment of goodwill without opening goodwill account and making payment to Monika on her retirement.

Journal Date Particulars F Debit Credit (₹) (₹) Mahi’s Capital A/c. Dr. $\displaystyle 8,000$ Mamta’s Capital A/c Dr. $\displaystyle 6,000$ To Monika’s Capital A/c. $\displaystyle 14,000$ (Monika share of goodwill adjusted in the capital account of Mahi and Mamta in the gaining ratio) Monika’s Capital A/c. Dr. $\displaystyle 1,09,000$ To Bank a/c $\displaystyle 1,09,000$ (Payment made to Monika on her retirement)