A and B are partners in a firm sharing profits in the ratio of 2: 1. They decided that with effect from 1^st April, 2025, they would share profits in the ratio of 3: 2. But, this decision was taken after the profit for the year ended 31^st March, 2026 of Rs. 90,000 was distributed in the old profit-sharing ratio.

Firm’s goodwill was valued on the basis of aggregate of two years’ profits preceding the date decision became effective.

Profits for the years ended 31^st March, 2024 & 2025 were Rs. 60,000 & Rs. 75,000 respectively. Capital A/c’s of the partners as at 31^st March, 2025 stood at Rs. 1,50,000 for A & Rs. 90,000 for B. Pass necessary Journal entries.