Partnership Retirement

Adjustment of Goodwill on Mukul's Retirement

Step 1: Determine the share of the retiring partner in goodwill.
Goodwill of the firm = Rs. 3,00,000
Mukul's share of goodwill =
$ 3 : 2 : 1 \frac{3}{5} \frac{2}{5} \frac{3}{5} - \frac{3}{6} = \frac{18-15}{30} = \frac{3}{30} = \frac{1}{10} \frac{2}{5} - \frac{2}{6} = \frac{12-10}{30} = \frac{2}{30} = \frac{1}{15} \frac{1}{10} : \frac{1}{15} = 3 : 2 \frac{3}{5} \times 50,000 = \text{Rs. } 30,000 \frac{2}{5} \times 50,000 = \text{Rs. } 20,000 $

Step 5: Conclusion.
Thus, the remaining partners compensate the retiring partner Mukul for his share of goodwill by debiting their capital accounts in the gaining ratio.