Sarthaks Test
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X and Y are partners in a firm sharing profits and losses in the ratio of 3:2. On 1st April, 2016, they admit Z as a new partner for 1/5th share in profits. On that date, there was a balance of Rs.1,50,000 in General Reserve and a debit balance of `20,000 in the Profit and Loss Account of the firm. Pass necessary Journal entries regarding adjustment of reserve and accumulated profit/loss.

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