Nitya and Anand are partners in a firm sharing profits and losses in the ratio of 3: 2. With effect from 1st April, 2022, they decided to share future profits equally. On the date of change in the profit-sharing ratio, the Profit and Loss Account showed a credit balance of Rs. 1,50,000. Record the necessary Journal entry for the distribution of the balance in the Profit and Loss Account immediately before the change in the profit-sharing ratio.

Nitya and Anand are partners in a firm sharing profits and losses in the ratio of 3: 2. With effect from 1st April, 2022, they decided to share future profits equally. On the date of change in the profit-sharing ratio, the Profit and Loss Account showed a credit balance of Rs. 1,50,000. Record the necessary Journal entry for the distribution of the balance in the Profit and Loss Account immediately before the change in the profit-sharing ratio.

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