A, B and C are partners sharing profits in the ratio of 1 : 2 : 3. On 1-4-2021 they decided to share the profits equally. On the date there was a credit balance of Rs. 1,20,000 in their profit and Loss Account and a balance of Rs. 1,80,000 in the General Reserve Account. Instead of closing the General Reserve Account and Profit and Loss Account, it is decided to record an adjustment entry for the same. In the necessary adjustment entry to give effect to the above arrangement:
1
Cr. A by Rs. 50,000; Cr. B by Rs. 50,000
2
Cr. A by Rs. 50,000; Dr. B by Rs. 50,000
3
Dr. A by Rs. 50,000; Cr. C by Rs. 50,000
4
Cr. A by Rs. 50,000; Dr. C by Rs. 50,000