Mohan, Girdhari and Shyam were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. On 31st March, 2022, Girdhari retired. After making all adjustments on account of reserves, revaluation of assets and reassessment of liabilities, the balance in Girdhari’s Capital Account stood at ₹5,00,000. Mohan and Shyam agreed to pay Girdhari ₹5,90,000 in full settlement of his claim.

Calculate the value of goodwill of the firm and pass the necessary journal raising goodwill account. 

Marks-3, CBSE:2021-22/Term-2/Zone-4/Set-1/Q-5