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

If the retiring partner is not paid fully immediately on retirement, then the remaining balance of his capital account will be transferred to his loan account and will be shown as his loan on the liabilities side . of the balance sheet of the firm

A partner may retire from the firm:
(i) With the consent of all the partners.
(ii) In accordance with an express agreement by the partners.

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.

Kumar's share = \(\cfrac { 1 }{ 4 } \)
Share gained = Retiring partner's share \(\times\) proportion of share gained
Navin = \(\cfrac { 1 }{ 4 } \times \cfrac { 1 }{ 2 } =\cfrac { 1 }{ 8 } \)
Ravi = \(\cfrac { 1 }{ 4 } \times \cfrac { 1 }{ 2 } =\cfrac { 1 }{ 8 } \)
New share of continuing partner = old share + share gained
Navin =  \(\cfrac { 1 }{ 2 } +\cfrac { 1 }{ 8 } =\cfrac { 4+1 }{ 8 } =\cfrac { 5 }{ 8 } \)
Ravi = \(\cfrac { 1 }{ 4 } +\cfrac { 1 }{ 8 } =\cfrac { 2+1 }{ 8 } =\cfrac { 3 }{ 8 } \)
Therefore, new ratio of Navin and Ravi is \(\cfrac { 5 }{ 8 } :\cfrac { 3 }{ 8 } \) that is 5: 3
Gaining ratio is 1 : 1

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.

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 = New share – Old share
Vinoth \(=\frac{2}{3}-\frac{3}{10}=\frac{20-9}{10}=\frac{11}{30}\)
Vimal \(=\frac{1}{3}-{2}{10}=\frac{10-6}{30}=\frac{4}{30}\)
Therefore, the gaining ratio of Vinoth and vimal \(\frac{11}{30}:\frac{4}{30}\), that is, 11:4

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)