Mita, Gopal and Farhan were partners sharing profits

22 :-  Mita, Gopal and Farhan were partners sharing profits and losses in the ratio 3 : 2 : 1. On 31st March, 2018 they decided to change the profit sharing ratio to 5 : 3 : 2. On this date, the Balance Sheet showed Deferred Advertisement Expenditure Rs 30,000 and Contingency Reserve Rs 9,000.
Goodwill was valued at Rs 4,80,000.
Pass the necessary Journal entries for the above transactions in the books of the firm on its reconstitution.

Solution :-

WORKING NOTES :-
Calculation of gaining and sacrificing ratio
Old ratio = 3:2:1
New ratio = 5:3:2

Mita = 3/6 – 5/10 = 30 – 30/60 = 0/60 = 0
Gopal = 2/6 – 3/10 = 20 – 18/60 = 2/60 (sacrifice)
Farhan = 1/6 – 2/10 = 10 – 12/260 = -2/60 (gain)