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A, B and C were partners in a firm sharing profits in the ratio of 6 : 5 : 4. Their capitals were A − 1,00,000; B − 80,000 and C − 60,000 respectively. On 1st April, 2009, A retired from the firm and the new profit sharing ratio between B and C was decided as 1 : 4. On A's retirement, the goodwill of the firm was valued at 1,80,000. Showing your calculations clearly, pass the necessary Journal entry for the treatment of goodwill on A's retirement.
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