SOLUTION
Amar and Akhar are partners sharing profits in the ratio of 2: 1. On 31st March, 2022, their Balance Sheet showed General Reserve of Rs. 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.