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)