Ravi, Guru, Mani and Sonu were partners in a firm sharing profits in the ratio of the 2:2:2:1. On 31st January, 2023, Sonu retired. On Sonu’s retirement the Goodwill of the firm was valued at Rs. 1,40,000. The new profit-sharing ratio among Ravi, Guru and Mani was agreed as 5:11. Showing your workings clearly, pass necessary Journal entry for the treatment of Goodwill in the books of the firm on Sonu’s retirement without opening goodwill account.

Marks-3, CBSE: 2023-24/Zone-5/Set-1/Q-18