Pawan, Iqbal and Rick are partners sharing profits in the ratio of 2 : 2 : 1. From 1st April, 2016, they decided to share profits in the ratio of 1 : 2 : 2. On that date, following balances appeared in the balance sheet. Profit and loss (debit balance Rs 40,000); general reserve Rs 1,40,000; deferred revenue expenditure Rs 20,000.
Pass adjusting journal entry when these reserves will appear in the books of the re-constituted firm.