A, B & C were sharing profits & losses in the ratio of 3:2:1. They decided to share profits & losses equally in the future. The general reserve appeared in their books at ₹60,000. Goodwill was valued at ₹1,20,000. The partners do not want to disturb the general reserve. The adjusting entry will be:

C's capital A/C Dr. ₹30,000
        To A's Capital A/C  ₹30,000

The correct answer is option 3-
C's capital A/C Dr. ₹30,000
        To A's Capital A/C  ₹30,000

Old ratio is 3:2:1
New ratio is 1:1:1
Sacrifice of A = 3/6 - 1/3
                     = (3-2)/6
                     = 1/6
Sacrifice of B = 2/6 -1/3
                     = (2-2)/6
                    = 0
Sacrifice of C = 1/6 -1/3
                     = (1-2)6
                     = -1/6 (GAIN)

It means B neither sacrifice nor gains. A sacrifices and C gains.

General Reserve + Goodwill
60,000 + 1,20,000
1,80,000
This amount is adjusted according to sacrifice and gain

So A's sacrifice = 1,80,000 x 1/6
                        = ₹30,000

A's A/c IS CREDITED WITH THIS AMOUNT
So C's gain = 1,80,000 x 1/6
                   = ₹30,000
C's A/c IS DEBITED WITH THIS AMOUNT

Adjusting journal entry is-
C's capital A/C Dr. ₹30,000
        To A's Capital A/C  ₹30,000