P>hawana and Vedika were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : 4. From 1st April, $\displaystyle 2024$ they decided to share future profits and losses in the ratio of $\displaystyle 4$ : 5. On this date, their balance sheet showed a debit balance of ₹ $\displaystyle 1,80,000$ in Profit and Loss Account and a balance of ₹ $\displaystyle 6,230,000$ in General Reserve. Partners decided to write off debit balance in Profit and Loss Account but decided not to distribute the General Reserve. Pass necessary journal entries for the above transactions on the reconstitution of the firm. Show your workings clearly.

Books of Bhawana and Vedika Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2024$ Bhawana’s Capital A/c Dr. $\displaystyle 1,00,000$ Apr.1 Vedika’s Capital A/c Dr. $\displaystyle 80,000$ To Profit and Loss A/c $\displaystyle 1,80,000$ (Debit balance of profit and loss account debited to the partners in their old profit sharing ratio) Apr.1 Vedika’s Capital A/c Dr. $\displaystyle 70,000$ To Bhawana’s Capital A/c $\displaystyle 70,000$ (Adjustment for General reserve due to change in profit sharing ratio) Working Notes: Old ratio = $\displaystyle 5$:$\displaystyle 4$ New ratio= $\displaystyle 4$:$\displaystyle 5$ Sacrificed share= Old share- New share Sacrificed share of Bhawana= $\displaystyle 5$/$\displaystyle 9$ -$\displaystyle 4$/$\displaystyle 9$= $\displaystyle 1$/$\displaystyle 9$ (sacrifice) Sacrificed share of Vedika= $\displaystyle 4$/$\displaystyle 9$ -$\displaystyle 5$/$\displaystyle 9$= -$\displaystyle 1$/$\displaystyle 9$ (gain)