Ram and Shyam were partners in a firm sharing profits

52 :- Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 2:1. Mohan was admitted for 1/3^rd share in the profits. On the date of Mohan’s admission, the balance sheet of Ram and Shyam showed General reserve of Rs 2,50,000 and a credit balance of Rs 50,000 in profit and loss account. Pass necessary journal entries on the treatment of these items on Mohan’s admission.

Solution :-