Mita, Geeta and Mohit were partners in a firm sharing profits and losses in the ratio of 5:3:2. With effect from 1″ April, 2022, they mutually agreed to share profits and losses in the ratio of 2:2:1. It was agreed that:
(i) Goodwill of the firm was valued at ₹1,40,000
(ii) Profit on revaluation of assets and re-assessment of liabilities amounted to ₹1,20,000.
Pass necessary journal entries for the above transactions in the books of the firm, Show your working notes clearly.