Anaya, Ritu, and Tisha are partners in a firm sharing profits in the ratio of 3:2:1. Riya is admitted as a new partner, and Anaya sacrifices a part of her share in favor of Riya. Riya brings goodwill in cash, and Anaya decides to withdraw her share of goodwill immediately in cash.

Which of the following is the correct journal entry in the books of the firm for Anaya’s withdrawal of goodwill?

Anaya’s Capital A/c Dr.  
    To Cash A/c

The correct answer is option 1- 
Anaya’s Capital A/c Dr.  
    To Cash A/c

When goodwill is withdrawn by the partners then their capital accounts are debited and bank/cash account is credited as bank/cash balance is reduced by that amount and their capital balance also. So, journal entry will be-
Partner's capital A/c
    To Bank/Cash A/c

The amount of premium brought in by the new partner is shared by the existing partners in their ratio of sacrifice. If the amount is paid through the firm, the following journal entries are passed:
(i) Bank A/c
    To Premium for Goodwill A/c
(Amount brought by new partner as premium)

(ii) Goodwill A/c
   To Sacrificing Partners Capital A/c (Individually)
(Goodwill distributed among the existing partners’ in their sacrificing ratio).

If the partners decide to withdraw their amounts, (in full or in part) the following additional entry will be passed:
(iii) Existing Partner’s Capital A/c (Individually) Dr.
    To Bank A/c
(The amount of goodwill withdrawn by the existing partners)