Vinay, Usha and Punit are partners in a firm. They have been sharing profits and losses in the ratio of 3 : 4 : 1.
Punit wants the profits to be shared equally amongst the partners. He further wants the change in profit sharing ratio to be applicable retrospectively for the last two years. Vinay and Usha have no objection to this. The profits for the last two years were Rs 70,000 and Rs 50,000. You are required to record the adjustment by means of a single journal entry. (Show the workings clearly).
