A nd B are partners sharing profit in ratio 2:2:1. A retires nd after all arrangements relating to revaluation,goodwill nd accumulative profits the capital account of B showed a credit balance of 140000 nd that if C 100000. It was decided to adjusted the capital of B nd C in their profit sharing ratio. Calculate new capitals nd record journal entries

Dear Student
Entry will be : 
C's Capital A/C.                    Dr.   20,000 
           To B's Capital A/C                            20,000 
As the present profit sharing ration is 2:2:1. After A's retirement new profit sharing ratio between B and C will be 2:1.
Present Capitals -  B's Capital - 140000
                              C's Capital  - 100000
Total Capital in new firm - 240000 (140000+100000)
New Capitals - B's Share - 240000*2/3 = 160000
                         C's share - 240000*1/3 = 80000

This shows B have to introduce 20000 into his capital and C is to be paid 20000 from his capital in order to maintain new capitals.

Regards