Nisha, Priya and Rajat were partners in a firm sharing profits in the ratio of 2 :2:1. The firm closes its books on 31st March every year. Priya died on 1st July 2022. On Priya’s death, the goodwill of the firm was valued at ₹3,00,000 and her share in the profits of the firm till the time of her death was to be calculated on the basis of previous year’s profit which was ₹6,00,000.
Pass necessary journal entries for the treatment of goodwill and Priya’s share of profit at the time of her death.