Harish, Paresh and Sara were partners sharing profit in the ratio of 3:2:1. Sara died and on

Harish, Paresh, and Sara were partners, sharing profits in the ratio 3:2:1. Sara died and on her death, the goodwill of the firm is valued at Rs.10,00,000. Following entry is passed for adjustment of goodwill.

Harish’s Capital A/c                     ..Dr.                   80,000

Paresh’s Capital A/c                     ..Dr.                 1,20,000

To Sara’s Capital A/c                                                                2,00,000

(Being the share of goodwill of deceased partner adjusted)

Amount credited to Sara’s Capital Account was Rs.1,50,000 on account of Goodwill and Loss of Revaluation Account.

(a) determine new profit-sharing ratio of Harish and Paresh; and

(b) Determine the total amount of gain (profit) or loss on revaluation of assets and reassessment of liabilities.