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X and Y are partners sharing profits in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet showed General Reserve of 60,000. It was decided that in future they will share profits and losses in the ratio of 3 : 2. Pass necessary Journal entry in each of the following alternative cases:
When General Reserve is not to be shown in the new Balance Sheet.
When General Reserve is to be shown in the new Balance Sheet.
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