A, B and C are partners sharing profits equally. From 1st April, 2017, they decided to share profits in the ratio of 3 : 4 : 5. On that date, Profit and Loss Account showed a credit balance of Rs. 90,000. Partners do not want to distribute the Profit and Loss Account balance but prefer to record the change by an adjustment entry. You are required to give the adjusting entry.

Explanation

Debit C and Credit A by Rs. 7,500.