A, B and C are partners sharing profits and losses in the ratio of 1 : 2 : 3. From April 1, 2016 , they decided to share the profits in the ratio of 2 : 3 : 4. On that date, Profit and Loss Account disclosed a debit balance of Rs. 90,000. Record the necessary journal entry for the distribution of the balance in the Profit and Loss Account.

Explanation

Debit A's Capital A/c by Rs. 15,000, B's Capital A/c by Rs. 30,000 and C's Capital A/c by Rs. 45,000.