Alok, Sonu and Ravi 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 1^st April. They also decide to record the effect of the following accumulated profits, Losses, and reserves without affecting their book value by passing a single entry.

                                                                        Accumulated profits/ Losses                                                                                                         Book Values (RS.)

                                                                        General Reserve                                                                                                                                                                           6,000

                                                                        Profit & Loss A/c (Credit)                                                                                                                             24,000

                                                                        Advertisement Suspense A/c                                                                                                                      12,000

Pass an Adjustment Entry