X, Y, Z are equal partners. They have decided to change their profit sharing ratio as 3 : 2 : 1. At the time of the change in ratio, General Reserve amounted to ₹6,000, which they want to carry forward in reconstituted partnership. To record the above, following journal entry will be passed:

X's capital A/c      ₹1,000
         To Z's capital A/c         ₹1,000

The correct answer is Option (4).
X's capital A/c      ₹1,000
         To Z's capital A/c         ₹1,000.

Old ratio = 1:1:1 (X, Y, Z)
New ratio = 3:2:1 (X, Y, Z)

Sacrifice of X = 1/3 - 3/6
                    = (2-3)6
                    = -1/6 (GAIN)

Sacrifice of Y = 1/3 - 2/6
                    = (2-2)/6
                    = 0 NO SACRIFICE NO GAIN

Sacrifice of Z = 1/3 - 1/6
                    = (2-1)6
                    = 1/6

General reserve = ₹6000
Share in GR = 6000 x 1/6
                  = ₹1000

As Z is sacrificing and X is gaining so partner X will compensate Partner Z. Journal entry for this-
X's capital A/c  Dr.    ₹1,000
     To Z's capital A/c         ₹1,000