Soham, Ashish, Vishesh and Rashi were partners in a firm sharing profits and losses in the ratio of 4: 3: 2: 1. With effect from 1st April, 2023,…

Books of Soham, Ashish, Vishesh and Rashi Journal Date Particulars L.F Dr. Amount Cr. Amount ₹ ₹ $\displaystyle 2023$ General Reserve A/c Dr $\displaystyle 80,000$ April $\displaystyle 1$ To Soham’s Capital A/c $\displaystyle 32,000$ To Ashish’s Capital A/c $\displaystyle 24,000$ To Vishesh’s Capital A/c $\displaystyle 16,000$ To Rashi’s Capital A/c $\displaystyle 8,000$ (Distribution of General Reserve in old profit-sharing ratio) $\displaystyle 2023$ Rashi’s Capital A/c Dr $\displaystyle 50,000$ April $\displaystyle 1$ To Ashish’s Capital A/c $\displaystyle 50,000$ (Adjustment for Goodwill on account of change in profit sharing ratio) Working notes: Calculation of gain/ sacrifice Gaining Share= New share- Old share Soham = $\displaystyle 2$/$\displaystyle 5$- $\displaystyle 4$/$\displaystyle 10$ = Nil Ashish = $\displaystyle 1$/$\displaystyle 5$- $\displaystyle 3$/$\displaystyle 10$ = -$\displaystyle 1$/$\displaystyle 10$ (Sacrifice) Vishesh = $\displaystyle 1$/$\displaystyle 5$- $\displaystyle 2$/$\displaystyle 10$ = Nil Rashi = $\displaystyle 1$/$\displaystyle 5$- $\displaystyle 1$/$\displaystyle 10$ = $\displaystyle 1$/$\displaystyle 10$ (Gain)