Sunny, Vaibhav and Mita were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. Sunny retired on 31st March, 2022. After making all adjustments relating to revaluation, goodwill and accumulated profit, etc. the capital accounts of Vaibhav and Mita showed a credit balance of ₹ $\displaystyle 1,00,000$ and ₹ $\displaystyle 50,000$ respectively. It was decided to adjust the capitals of Vaibhav and Mita in their new profit sharing ratio. Calculate the new capitals of the partners and pass necessary journal entries for bringing in or withdrawal of the necessary amounts by the partners.

Calculation of new capitals of Partners Total capital of the new firm= ₹$\displaystyle 1,00,000$ + ₹$\displaystyle 50,000$ = ₹$\displaystyle 1,50,000$ Vaibhav’s new capital= ₹$\displaystyle 1,50,000$ x $\displaystyle 3$/$\displaystyle 5$ = ₹$\displaystyle 90,000$ Mita’s new capital= ₹$\displaystyle 1,50,000$ x $\displaystyle 2$/$\displaystyle 5$ = ₹$\displaystyle 60,000$ Books of Sunny, Vaibhav and Mita JOURNAL Dr. Cr. Date Particulars LF Amount Amount (₹) (₹) $\displaystyle 2022$ (i) $\displaystyle 10,000$ Mar $\displaystyle 31$ Vaibhav’s Capital A/c Dr $\displaystyle 10,000$ To Cash A/c / Bank A/c ( Amount withdrawn by Vaibhav for capital adjustment) __________________________ Cash A/c / Bank A/c Dr Mar $\displaystyle 31$ $\displaystyle 10,000$ To Mita’s Capital A/c $\displaystyle 10,000$ ( Amount brought in by Mita for capital adjustment) __________________________