P,Q and R are partners in a firm sharing profits in the ratio of 2:2:1 on 1.4.2007 the partners decided to share future profits in the ratio of 3:2:1 on that day balance sheet of the firm shows General Reserve of Rs 50,000. Pass entry for distribution of reserve.


Ans.

Date
Particulars
Debit
Credit

General Reserve A/c   Dr.
50000


To P's Capital A/c

20000

To Q's Capital A/c

20000

To R's Capital A/c

10000

(Being Reserve distributed)



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