Suresh, Ramesh and Tushar were partners of a firm sharing profits in the ratio of 6:5:4. Ramesh retired and his capital after making adjustments on account of reserves, revaluation of assets and reassessment of liabilities stood at ₹2,50,400. Suresh and Tushar agreed to pay him ₹2,90,000 in full settlement of his claim. 

Pass necessary journal entry for the treatment of goodwill. Show workings clearly.

Marks-2, CBSE:2021-22/Term-2/Sample/Q-3

error: Content is protected !!