Dinesh, Ramesh and Suresh are partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2. From 1st April, 2018 they decided to share the future profits equally

Dinesh, Ramesh and Suresh are partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2. From 1st April, 2018 they decided to share the future profits equally. On this date, the General Reserve showed a balance of ₹ 1,60,000; Revalution of fixed assets resulted into a gain of ₹ 1,02,000 and stock resulted into a loss of ₹ 22,000. On this date the goodwill of the firm was valued at ₹ 3,60,000.

Pass necessary journal entries for the above transactions on reconstitution of the firm.

[Ans. Adjustment for Goodwill: Dr. Suresh by ₹ 30,000 and Cr. Dinesh and Ramesh by ₹ 15,000 each.]