A, B & C were sharing profits & losses in the ratio of 3 : 2 : 1. They decided to share profits & losses equally in future. General reserve was appearing in their books at ₹60,000. Goodwill was valued at ₹1,20,000. The partners do not want to disturb the general reserve.
The adjusting entry will be:
1
A's capital A/C Dr. 1,80,000
To C's Capital A/C 1,80,000
2
A's capital A/C Dr. 1,80,000
To B's Capital A/C 1,20,000
To C's Capital A/C 60,000
3
C's capital A/C Dr. 30,000
To A's Capital A/C 30,000
4
C's capital A/C Dr. 1,80,000
To A's Capital A/C 1,20,000
To B's Capital A/C 60,000