X and Y are partners sharing profits in the ratio of 2 1 On 31st March 2019 their Balance Sheet show...........

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:

i

When General Reserve is not to be shown in the new Balance Sheet.

ii

When General Reserve is to be shown in the new Balance Sheet.