Miter, Geeta and Mohit were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$:$\displaystyle 3$:2. With effect from 1st April, $\displaystyle 2022$, they mutually agreed to share profits and losses in the ratio of $\displaystyle 2$:$\displaystyle 2$:1. It was agreed that : (i) Goodwill of the firm was valued at ₹ $\displaystyle 1,40$,000. (ii) Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ $\displaystyle 1,20$,000. Pass necessary journal entries for the above transactions in the books of the firm. Show your working notes clearly.

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 Q. Saraswati Ltd……………………………………………