Shweta, Meenu and Asha were partners in a firm sharing profits and losses in the ratio of 3 : 5 : 2. Meenu retired on 1st April, 2022. After making all adjustments relating to revaluation, goodwill and accumulated profits

Shweta, Meenu and Asha were partners in a firm sharing profits and losses in the ratio of 3 : 5 : 2. Meenu retired on 1st April, 2022. After making all adjustments relating to revaluation, goodwill and accumulated profits, etc., Capital Accounts of Shweta and Asha showed credit balance of ₹ 3,00,000 and ₹ 1,00,000 respectively. It was decided to adjust the capitals of Shweta and Asha in their new profit sharing ratio.

Pass necessary Journal entries for bringing in or widrawal of the necessary amounts involved. Show your working clearly.

[Ans.: (I) Dr. Bank A/c and Cr. Asha’s Capital A/c ₹ 60,000; (ii) Dr. Shweta’s Capital A/c and Cr. Bank A/c ₹ 60,000.]