Ajay, Vijay, Sanjay and Dhananjay are partners in a firm sharing profits and losses in the ratio of 2 : 2: 1 : 1. Vijay decided to retire from the firm. The Goodwill of the firm was valued at ₹12,00,000.
Pass necessary journal entry for the treatment of Goodwill on Vijay’s retirement without opening goodwill account.