Vibha, Sudha and Ashish were partners in a firm sharing profits in the ratio 2:3:1. Sudha retired and the balance in her capital account after making necessary adjustments on account of reserves, revaluation of assets and re-assessment of liabilities was ₹85,0O0, Vibha, and Ashish agreed to pay Sudha ₹1,15,000 in full settlement of her claim. Record the necessary journal entry for goodwill on Sudha’s retirement.

Marks-3, CBSE:2022-23/Zone-2/Set-1/Q-19