Reeha, nee nu and Sara were partners in a partnership firm sharing profits and losses in the ratio of $\displaystyle 2$:$\displaystyle 2$:1. With effect from 1st April, $\displaystyle 2023$, they agreed to share profits and losses equally. On that date, there was a General Reserve of ₹ $\displaystyle 50,000$ in the books of the firm. It was agreed that : (i) Goodwill of the firm be valued at ₹ $\displaystyle 3,00$,000. (ii) Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ $\displaystyle 30$,000. Pass necessary journal entries for the above transactions in the books of the firm.

Books of Reeha, Meenu and Sara Journal L.F Debit Credit Date Particulars Amount Amount (₹) (₹) $\displaystyle 2023$ General Reserve A/c Dr $\displaystyle 50,000$ Apr $\displaystyle 1$ To Reeha’s Capital A/c $\displaystyle 20,000$ To Meenu’s Capital A/c $\displaystyle 20,000$ To Sara’s Capital A/c $\displaystyle 10,000$ (General Reserve, transferred to partners’ capital accounts in old ratio) Revaluation A/c Dr $\displaystyle 30,000$ “ To Reeha’s Capital A/c $\displaystyle 12,000$ To Meenu’s Capital A/c $\displaystyle 12,000$ To Sara’s Capital A/c $\displaystyle 6,000$ (Profit on revaluation of assets and reassessment of liabilities transferred to partners’ capital accounts in old ratio) Sara’s Capital A/c Dr $\displaystyle 40,000$ “ To Reeha’s Capital A/c $\displaystyle 20,000$ To Meenu’s Capital A/c $\displaystyle 20,000$ ( Share of goodwill adjusted to capital account of partners in their sacrificing ratio $\displaystyle 1$:$\displaystyle 1$ ) Q. (a) Mahesh Ltd. …………………………………………