The lone pair of electrons on nitrogen moves to yield a C=N double bond while the electron of the carbonyl moves to oxygen and the oxygen is protonated to yield the product show.
Before we consider the movement of electrons, we must know that oxygen is more electronegative than nitrogen.
The implication of this is that oxygen is better able to accommodate the negative charge than nitrogen.
The lone pair of electrons migrates from nitrogen to give a C=N bond while the electrons of the C=O bond moves towards oxygen and the oxygen is protonated as shown.
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