The profit or loss on revaluation of assets and liabilities on the retirement of Mohana will be transferred to the capital accounts of the partners in their old ratio i.e. 4:3:2.

At the time of retirement a partner is entitled to get an amount equal to his share in profits out of firm's goodwill

Profit and loss suspense account is opened to credit the share of profit of the deceased partner

A person who is retired from the firm is known as an outgoing partners or retiring partners.

New profit sharing ratio is the agreed proportion in which future profit will be distributed to the continuing partners

Since, New profit sharing ratio, share gained and the proportion of share gained is not given, the new share is calculated by assuming that the share gained in the proportion of old ratio. Therefore the new profit sharing ratio and the gaining ratio between the continuing partners, Gani and Soni is their old profit sharing ratio, that is 5 : 6.

Sunil = \(\frac{3}{10}+\frac{4}{10}=\frac{7}{10}\)
(Sundar share is  added with old ratio)
Sumathi = \(\cfrac { 3 }{ 10 } +0=\cfrac { 3 }{ 10 } \)
New ratio = 7 : 3
Sacrificing ratio = 4 : 0 

To transfer the amount due to the deceased  partner to the executor or legal representative of the deceased partner

Date	Particulars	L.F	Debit Rs	Credit Rs
	Deceased partner's capital AI c Dr.		xxx
	To Deceased partner's executor's A/c			xxx
	(Amount transferred to executor's account

Gaining Ratio is the proportion of the profit which is gained by the continuing partner.
Gaining ratio = Ratio of share gained by the Conitinuing partners.
Share gained = New share - Old share

When a partner leaves from a partnership firm it is known as retirement. The reasons for the retirement of a partner may be illness, old age better opportunity elsewhere, disagreement with other partners, etc.

As the new profit sharing ratio and gain made by the continuing partners is not mentioned, it is assumed that they gain in their old profit sharing ratio of 2:1. Therefore, gaining ratio is 2:1.
Suresh’s share of goodwill \(=36000\times\frac{3}{6}=Rs.18000\)

Journal Entries

Date	Particulars		L.f	Debit Rs.	Credit Rs.
	Senthamari’s capital A/c (18,000 × 2/3)	Dr.		12,000
	Raj’s capital A/c (18,000 × 1/3)	Dr.		6,000
	To Suresh’s capital A/c				18,000
	(Suresh’s share of goodwill adjusted)

Rohit's share \(\frac{2}{10}\)
Share gained = Retiring partner’s share × Proportion of share gained
Rahul = \(\frac{2}{10}\times\frac{3}{5}=\frac{6}{50}\)
Ravi  =  \(\frac{2}{10}\times\frac{2}{5}=\frac{4}{50}\)
Gaining ratio \(\frac{6}{50}:\frac{4}{50}\) that is, 3 : 2
New share of continuing partners = Old share + Share gained
Rahul \(=\frac{5}{10}+\frac{6}{50}=\frac{25+6}{50}=\frac{31}{50}\)
Ravi  \(=\frac{3}{10}+{4}{50}=\frac{15+4}{50}=\frac{19}{50}\)
The new profit sharing ratio of Rahul and Ravi is \(\frac{31}{50}:\frac{19}{50}\) that is 31 : 19.

Share gained by Arya = \(\frac{2}{8}\)
Gaining ratio = \(\frac{2}{8}\): 0 that is, \(\frac{1}{4}:\)0 or 1 : 0
New share of continuing partner = Old share + Share gained
Arya  \(=\frac{3}{8}+\frac{2}{8}=\frac{5}{8}\)
Benin \(=\frac{3}{8}+0=\frac{3}{8}\)
Therefore, new profit sharing ratio of Arya and Benin is \(\frac{5}{8}:\frac{3}{8}\) that is 5:3

Journal entry

Date	Particulars		L.F	Debit Rs.	Credit RS.
2019 January 1	Mary’s capital A/c	Dr.		25,000
	Meena’s capital A/c	Dr.		25,000
	Mariam’s capital A/c	Dr.		25,000
	To Profit and loss a/c				75,000
	(Accumulated loss transferred to all partners’ capital account in the old profit sharing ratio)

Journal entry

Date	Particulars		L.F	Debit Rs.	Credit RS.
2017 March 31	General reserve A/c	Dr.		60,000
	To Vivin’s capital A/c (60,000 × 3/6)				30,000
	To Hari’s capital A/c (60,000 × 2/6)				20,000
	To Joy’s capital A/c (60,000 × 1/6)				10,000
	(General reserve transferred to all partners’ capital account in the old profit sharing ratio)