The Balance sheet of Himanshu, Pranav and Tushar who were sharing profits in proportion to their capital stood as follows:

Addition Information:
(a) On 1st April 2022, they admitted Rachit into partnership for 1/6th share in future profit.
(b) Rachit will bring 25,000 for capital and 15,000 for goodwill.
(c) A provision for doubtful debts of 7% was to be made.
(d) Land and building is to be appreciated to 120%.
(e) Machinery is decreased by ₹1,500.

On the basis of above case give answer to question:

Identify the Journal Entry that is to be recorded for distribution of profit and loss account appearing in the Balance Sheet among partners:

Himanshu's Capital A/c Dr. ₹750
Pranav's Capital A/c Dr.     ₹450
Tushar's Capital A/c Dr.     ₹300
      To Profit and Loss A/c            ₹1500

Distribution of profit and loss account will be made in old ratio as it is accumulated loss.
Old ratio between old partners is capital ratio which means 35000:21000:14000
                                                                                         =  5:3:2
Himanshu = 1500 X 5/10
                = 750
Parnav = 1500 X 3/10
             = 450
Tushar = 1500 X 2/10
           = 300
So, Old partners capital will be debited and profit and loss account will be credited.
Journal entry for this -
Himanshu's Capital A/c Dr. 750
Pranav's Capital A/c Dr.     450
Tushar's Capital A/c Dr.     300
      To Profit and Loss A/c            1500