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Asha, Naveen and Shalini were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at a value of 80,000 and General Reserve at 40,000. Naveen decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at 1,20,000. The new profit-sharing ratio decided among Asha and Shalini is 2 : 3. Record necessary Journal entries on Naveen's retirement.
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