A & B are partners sharing profits in the ratio of 3:2 and decide to share profits in the future equally. On the date of change in ratio, P& L A/c shows a debit balance of ₹50,000. What will be the journal entry for the distribution of this balance before the change in the profit-sharing ratio?

A's Capital A/c Dr.   ₹30,000
B's Capital A/c Dr.   ₹20,000
    To P&L A/c                     ₹50,000
(Distribution of P & L balance)

The correct answer is option 3-
A's Capital A/c Dr.   ₹30,000
B's Capital A/c Dr.   ₹20,000
    To P&L A/c                     ₹50,000
(Distribution of P & L balance)

Accumulated earnings are the sum of a company’s profits, retained earnings, earned surplus, or retained capital, after dividend payments, since the company’s inception. Accumulated losses refer to the advertisement expenditure and also previous year losses (if any) which have not been distributed among partners. These accrued gains or losses perfectly fits the partners and should be transferred to the capital a/c of the partners in their old profit sharing ratio.
Following journal entries have to be made:

For transfer of reserves and accumulated profits :
Reserves A/c
Profit and loss A/c (Cr balance)
Workmen compensation A/c
Investment fluctuation reserve A/c
     To all partner’s capital/current A/cs

For transfer of accumulated losses:
All partners’ capital/current A/cs
    To Profit and loss A/c (Dr Balance)
    To deferred Revenue expenditure A/c (say, advertisement suspense a/c)

So,journal entry will be-
A's Capital A/c Dr.   ₹30,000
B's Capital A/c Dr.   ₹20,000
     To P&L A/c               ₹50,000

50,000 is distributed between partners in their old ratio 3:2.