Anubha and Yuvika were partners in a firm sharing profits and losses in the ratio of 3: 2. From 1st April 2024, they decided to share future profits…

Books of Anubha and Yuvika Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2024$ Anubha’s Capital A/c Dr. $\displaystyle 1,50,000$ Apr.1 Yuvika’s Capital A/c Dr. $\displaystyle 1,00,000$ To Profit and Loss A/c $\displaystyle 2,50,000$ (Debit balance of profit and loss account debited to the partners in their old profit sharing ratio) Apr.1 Yuvika’s Capital A/c Dr. $\displaystyle 10,000$ To Anubha’s Capital A/c $\displaystyle 10,000$ (Adjustment of General reserve due to change in profit sharing ratio) Working Notes: Old ratio = $\displaystyle 3$:$\displaystyle 2$ New ratio= $\displaystyle 2$:$\displaystyle 3$ Sacrificed share= Old share- New share Sacrificed share of Anubha= $\displaystyle 3$/$\displaystyle 5$ -$\displaystyle 2$/$\displaystyle 5$= $\displaystyle 1$/$\displaystyle 5$ (sacrifice) Sacrificed share of Yuvika= $\displaystyle 2$/$\displaystyle 5$ -$\displaystyle 3$/$\displaystyle 5$= -$\displaystyle 1$/$\displaystyle 5$ (gain)