Shankar, Babita and Vishal are partners in a firm in the ratio 5 : 4 : 2. On 1st April, 2019 they decided to share profits in future in the ratio of 4 : 3 : 2. On this date general reserve was Rs. 34,900 and loss on revaluation of assets and liabilities was Rs. 5,200. It was decided that adjustment should be made without altering the figures of assets and liabilities in the Balance Sheet. Make adjustment by a single journal entry.

Explanation

`{:(,,"Rs."),("General Reserve",,"34,900"),("(-) Loss on Revaluation",,"5,200"),(,,bar ul("29,700")):}`
Old Ratio of Shanker, Babita and Vishal 5 : 4 : 2
New Ratio of Shanker, Babita and Vishal 4 : 3 : 2
sacrifice or Gain :
`{:("Shanker"=(5)/(11)-(4)/(9)=(1)/(99)("Sacrifice"),,"29,7000"xx(1)/(99)=300 ("Cr.")),("Babita"=(4)/(11)-(3)/(9)=(3)/(99)("Sacrifice"),,"29,700"xx(3)/(99)=900 ("Cr.")),("Vishal"=(2)/(11)-(2)/(9)=(4)/(99)("Gain"),,"29,700"xx(4)/(99)="1,200 (Dr.)"):}`