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X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2019. They also decide to
record the effect of the following accumulated profits, losses and reserves without affecting their book values by passing a single entry .
General Reserve 6,000
Profit and Loss A/c 24,000
Pass an Adjustment Entry.
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