Jaya, Kirti, Ekta and Shewata are partners in a firm sharing profits and losses in the ratio of `2 : 1 : 2: 1 `. On Jaya's retirement, the goodwill of the firm is valued at Rs. 36,000. Kirti, Ekta and Shweta decided to share future profits equally. Record the necessary journal entry for the treatment of goodwill without opening 'Goodwill Account'.

Explanation

Working Notes
1. Jaya's Share of Goodwill
`=Rs. 36,000xx(2)/(6)=Rs. 12,000`
2. Calculation of Gaining Ratio
Gaining Share = New Share - Old Share
Kirti's Gain `=(1)/(3)-(1)/(6)=(2-1)/(6)=(1)/(6)`
Ekta's Gain = `=(1)/(3)-(2)/(6)=(2-2)/(6)=(0)/(6)` (Neither Gain nor Sacrifice)
Shewata's Gain `=(1)/(3)-(1)/(6)=(2-1)/(6)=(1)/(6)`
Hence, Gaining ratio between Kirti and Shewata `(1)/(6):(1)/(6)=1:1`