Ram, Shyam and Mohan were in partnership sharing profits and losses in the proportions of 3: 2:1. On 1st April, 2011, Shyam retires from the firm. At that date, their Balance Sheet was as follows: Liabilities Trade Creditors Bills Payable Expenses owing Reserve Fund Assets 30,000 Cash in hand 27,000 Debtors 45,000 Less : Provision 1.05,000 Stock Factory Premises 48,000 Investments Loose Tools 2,00.000 1,50.000 1,00,000 4,50.000 7.05,000 90,000 1,60,000 10,000 1,50,000 1,20,000 2,25,000 80,000 40,000 Workmen's Compensation Reserve Capitals : Ram Shyam Mohan 7,05,000 The terms were: (1) Goodwill of the firm to be valued at 2 times of Average Super Profits of last three years. Taking into consideration the risk of the business, normal profits of the firm are estimated at 5,00,000 every year. But actual profits of last three years ending 31st March were as 2009 - 26,00,000, 2010 5,50,000, 2011 - 35,75,000. (2) Expenses owing to be brought down to 337,500. (3) Investments are revalued at 72,000. Ram took over investments at this value. (4) Factory premises is to be revalued at $2,43,000; and Loose tools at 36,000. (5) Provision for doubtful Debts to be increased by 19,500. (6) Claim on account of Workmen's Compensation is 218,000. (7) Shyam be paid 50,000 in cash and balance due to him treated as a loan carrying interest @ 6% per annum. Show Journal entry for goodwill adjustment, prepare necessary ledger accounts and opening balance sheet of the continuing partners