Aamir, Bashir and Chirag were partners in a firm sharing profits and losses in the ratio of 3:3:2. Chirag retired. Aamir and Bashir decided to share profits and losses in future in the ratio of 1:2. On the day of Chirag’s retirement, goodwill of the firm was valued at Rs. 5,40,000. 

Calculate gaining ratio and pass necessary journal entry to record the treatment of goodwill (without opening goodwill account) on Chirag’s retirement.

Marks-3, CBSE: 2023-24/Zone-1/Set-1/Q-17