Mita, Geeta and Mohit were partners in a firm sharing profits and losses in the ratio of 5:3:2. With effect from 1st April, 2022, they mutually…

Books of Mita, Geeta and Mohit Journal L.F Debit Credit Date Particulars Amount Amount (₹) (₹) $\displaystyle 2022$ Geeta’s Capital A/c Dr $\displaystyle 14,000$ April $\displaystyle 1$ To Mita’s Capital A/c $\displaystyle 14,000$ (Goodwill adjusted on change in profit sharing ratio) Revaluation A/c Dr $\displaystyle 1,20,000$ April $\displaystyle 1$ To Mita’s Capital A/c $\displaystyle 60,000$ To Geeta’s Capital A/c $\displaystyle 36,000$ To Mohit’s Capital A/c $\displaystyle 24,000$ (Profit on revaluation of assets and re-assessment of liabilities transferred to partners in old profit sharing ratio) Working Notes:- 1. Calculation of Gain/ Sacrifice= New share- Old share Mita’s share= $\displaystyle 5$/$\displaystyle 10$-$\displaystyle 2$/$\displaystyle 5$= $\displaystyle 1$/$\displaystyle 10$ (Sacrifice) Geeta’s share= $\displaystyle 3$/$\displaystyle 10$- $\displaystyle 2$/$\displaystyle 5$= (-$\displaystyle 1$/$\displaystyle 10$) (Gain) Mohit’s share= $\displaystyle 2$/$\displaystyle 10$- $\displaystyle 1$/$\displaystyle 5$= Nil