Isha, Surbhi, Naman and Manya were partners in a firm sharing profits and losses in the ratio of $\displaystyle 4$ : $\displaystyle 3$ : $\displaystyle 2$ : 1. They decided to share profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 2$ : $\displaystyle 2$ : $\displaystyle 1$ with effect from 1st April, 2022. On this date, the goodwill of the firm was valued at ₹ $\displaystyle 6,00,000$ and General Reserve appeared in the books at ₹ $\displaystyle 2,00$,000. Pass necessary journal entries for the above transactions. Show your workings clearly.

Sacrificed Share = Old share – New share Isha $\displaystyle 4$/$\displaystyle 10$ – $\displaystyle 5$/$\displaystyle 10$ = ($\displaystyle 1$/$\displaystyle 10$ ) Gain Surbhi $\displaystyle 3$/$\displaystyle 10$ – $\displaystyle 2$/$\displaystyle 10$ = $\displaystyle 1$/$\displaystyle 10$ Sacrifice Naman $\displaystyle 2$/$\displaystyle 10$ – $\displaystyle 2$/$\displaystyle 10$ = No gain/ sacrifice Manya $\displaystyle 1$/$\displaystyle 10$ – $\displaystyle 1$/$\displaystyle 10$ = No gain / sacrifice $\displaystyle 5$ Books of Isha, Surbhi, Naman and Manya Journal Debit Credit Date Particulars L.F Amount Amount (₹) (₹) $\displaystyle 2022$ General Reserve A/c Dr. $\displaystyle 2,00,000$ April $\displaystyle 1$ To Isha’s Capital A/c $\displaystyle 80,000$ To Surbhi’s Capital A/c $\displaystyle 60,000$ To Naman’s Capital A/c $\displaystyle 40,000$ To Manya’s Capital A/c $\displaystyle 20,000$ (General reserve distributed in old ratio) ,, Isha’s Capital A/c Dr. $\displaystyle 60,000$ To Surbhi’s Capital A/c $\displaystyle 60,000$ (Goodwill adjusted on change in profit sharing ratio )