retired partner's share of goodwill adjusted through the capital account of continuing partners in which ratio and why(in treatment of goodwill)
In case of retirement and death, goodwill is adjusted through the partners' account in Gaining Ratio. The Journal entry for adjusting goodwill is:
Remaining or Continuing Partners' Capital Account Dr.
To Retiring or Deceased Partner's Capital Account
(Goodwill adjusted in the gaining ratio)
To understand this concept clearly, go through the Lesson- (Treatment of Goodwill in case of Retirement and Death) of Chapter- 3 (Reconstitution- Retirement and Death) at the below-given link.