Rambha and Urvashi were partners in a firm sharing profits and losses in the ratio of $\displaystyle 13$ : 12. From 1st April, $\displaystyle 2024$, they decided to share future profits and losses in the ratio of $\displaystyle 12$ : 13. On this date, their balance sheet showed a debit balance of ₹ $\displaystyle 2,50,000$ in Advertising Suspense Account and a balance of ₹ $\displaystyle 5,00,000$ in Contingency Reserve. Partners decide to write off the balance of the Advertising Suspense Account but decided not to distribute Contingency Reserve. Pass necessary journal entries for the above transactions on the reconstitution of the firm. Show your working clearly.

Books of Rambha and Urvashi Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2024$ Rambha’s Capital A/c Dr. $\displaystyle 1,30,000$ Apr.1 Urvashi’s Capital A/c Dr. $\displaystyle 1,20,000$ To Advertising Suspense A/c $\displaystyle 2,50,000$ (Debit balance of advertising suspense account written off among the partners in their old profit sharing ratio) Apr.1 Urvashi’s Capital A/c Dr. $\displaystyle 20,000$ To Rambha’s Capital A/c $\displaystyle 20,000$ (Adjustment for contingency reserve due to change in profit sharing ratio) Working Notes: Old ratio = $\displaystyle 13$:$\displaystyle 12$ New ratio= $\displaystyle 12$:$\displaystyle 13$ Sacrificed share= Old share- New share Sacrificed share of Rambha= $\displaystyle 13$/$\displaystyle 25$ -$\displaystyle 12$/$\displaystyle 25$= $\displaystyle 1$/$\displaystyle 25$ (sacrifice) Sacrificed share of Urvashi= $\displaystyle 12$/$\displaystyle 25$ -$\displaystyle 13$/$\displaystyle 25$= -$\displaystyle 1$/$\displaystyle 25$ (gain)