A, B, C and D are partners sharing profits in the ratio of 4 : 3 : 2 : 2. C retires and the remaining partners decided to share future profits in 5 : 3 : 2

A, B, C and D are partners sharing profits in the ratio of 4 : 3 : 2 : 2. C retires and the remaining partners decided to share future profits in 5 : 3 : 2. on the date of C’s retirement there was a debit balance of ₹ 30,800 in the profit and loss account. Show the necessary journal entry for the treatment of profit and loss account balance.

[Ans. Capital accounts of all partners will be debited in old ratio.]