A, B, C and D are partners sharing profits in the ratio of 3 : 3 : 2 : 2 respectively. D retires and A, B and C decide to share future profits in the ratio of 3 : 2 : 1. Goodwill of the firm is valued at ₹ 6,00,000. Goodwill existed in the books at ₹ 4,50,000. Profits for the first year after D’s retirement was ₹ 12,00,000. Give the necessary Journal entries to record Goodwill and to distribute the profits. Show your calculations.
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