Jamuna, Ganga and Krishna are partners in a firm. Krishna retired from the firm. After making adjustments for Reserves and Revaluation of Assets and Liabilities, the balance of Krishna's capital account was Rs. 1,20,000. Jamuna and Ganga paid Rs 1.80,000 in full settlement to Krishna. Identify the item for which Jamuna and Ganga paid Rs 60,000 more to Krishna.

(CBSE 2013 Compartment paper)

Dear Student, Rs 60,000 (1,80,000-1,20,000) should be Krishna's share of goodwill which is paid by Jamuna and Gannga. 

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