Frank, George and Hemant were partners in a firm sharing profits in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. They decided to change their profit sharing ratio to $\displaystyle 2$ : $\displaystyle 5$ : $\displaystyle 3$ with effect from 1st April, 2023. Their Balance Sheet as at 31st March, $\displaystyle 2023$ was as follows : Balance Sheet of Frank, George and Hemant as at 31st March, $\displaystyle 2023$ Amount Amount Liabilities Assets (<) (<) Capitals : Land $\displaystyle 5,00,000$ Frank $\displaystyle 4,00,000$ Building $\displaystyle 3,00,000$ George $\displaystyle 3,00,000$ Machinery $\displaystyle 2,00,000$ Hemant $\displaystyle 2,00,000$ $\displaystyle 9,00,000$ Stock $\displaystyle 1,50,000$ Creditors $\displaystyle 5,00,000$ Debtors $\displaystyle 2,50,000$ Em $\displaystyle 10$ is' Provident Fund $\displaystyle 1,00,000$ Cash $\displaystyle 3,00,000$ General Reserve $\displaystyle 2,00,000$ $\displaystyle 17,00,000$ $\displaystyle 17,00,000$ It was decided that : (i) The value of land having appreciated be brought up to ₹ $\displaystyle 6,50$,000. (ii) Goodwill of the firm was valued at ₹ $\displaystyle 2,00$,000. Goodwill was not to appear in the books of the firm. Pass the necessary journal entries in the books of the firm.

Books of Frank, George and Hemant JOURNAL Date Particulars L.F. Dr. Cr. `) `) Amount ( Amount ( $\displaystyle 2023$ General Reserve A/c Dr. $\displaystyle 2,00,000$ April $\displaystyle 1$ To Frank’s Capital A/c $\displaystyle 1,00,000$ To George’s Capital A/c $\displaystyle 60,000$ To Hemant’s Capital A/c $\displaystyle 40,000$ (General reserve transferred to old partners’ capital accounts in old ratio.) “ Land A/c Dr. $\displaystyle 1,50,000$ To Revaluation A/c $\displaystyle 1,50,000$ (Value of land increased by `$\displaystyle 1,50$,000.) ” Revaluation A/c Dr. $\displaystyle 1,50,000$ To Frank’s Capital A/c $\displaystyle 75,000$ To George’s Capital A/c $\displaystyle 45,000$ To Hemant’s Capital A/c $\displaystyle 30,000$ (Gain on revaluation transferred to old partners’ capital accounts in old ratio.) ” George’s Capital A/c Dr. $\displaystyle 40,000$ Hemant’s Capital A/c Dr. $\displaystyle 20,000$ To Frank’s Capital A/c $\displaystyle 60,000$ (Goodwill adjusted due to change in profit sharing ratio.) .