Chaitanya and Divya were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : 1. From 1st April $\displaystyle 2025$, they decided to share future profits and losses in the ratio of $\displaystyle 2$ : 3. On this date, their balance sheet showed a debit balance of ₹ $\displaystyle 1,80,000$ in the Profit and Loss Account and a balance of ₹ $\displaystyle 90,000$ in General Reserve. The partners decided to distribute the General Reserve, but decided not to disturb the Profit and Loss Account, which will continue in the books of the reconstituted firm. Pass necessary journal entries for the above transactions on the reconstitution of the firm. Show your workings clearly.

Books of Chaitanya and Divya Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2025$ General Reserve A/c Dr. $\displaystyle 90,000$ April $\displaystyle 1$ To Chaitanya’s Capital A/c $\displaystyle 60,000$ To Divya’s Capital A/c $\displaystyle 30,000$ (General Reserve distributed among the partners in their old profit-sharing ratio) April $\displaystyle 1$ Chaitanya’s Capital A/c Dr. $\displaystyle 48,000$ To Divya’s Capital A/c $\displaystyle 48,000$ (Adjustment entry passed for debit balance of Profit and loss account) Calculation of Sacrificing share: Sacrificing Share = Old Share – New Share Chaitanya = $\displaystyle 2$/$\displaystyle 3$ – $\displaystyle 2$/$\displaystyle 5$ = $\displaystyle 4$/$\displaystyle 15$ sacrifice Divya = $\displaystyle 1$/$\displaystyle 3$ – $\displaystyle 3$/$\displaystyle 5$ = ($\displaystyle 4$/$\displaystyle 15$) gain