X, Y and Z are partners in a firm sharing profits in the ratio of 2 : 2 : 1 respectively. Y retires and X and Z decide to share future profit & Losses in the ratio of 3 : 5.

X, Y and Z are partners in a firm sharing profits in the ratio of 2 : 2 : 1 respectively. Y retires and X and Z decide to share future profit & Losses in the ratio of 3 : 5. At the time of retirement of Y, Debtors and Provision for Doubtful Debts appeared at ₹ 95,000 and ₹ 10,000 respectively. ₹ 7,500 of the debtors proved bad. A provision of 5% is to be created on Sundry Debtors for doubtful Debts.

Pass the necessary Journal entries.