Introduction:
Partnership is a business structure where two or more individuals come together to carry out a business activity. The profits and losses of the partnership are shared among the partners as per their agreed ratio.

Initial Profit Sharing Ratio:
A, B, and C are partners sharing profits and losses in the ratio of 1:2:3. This means that for every Rs. 1 of profit, A will get Rs. 1, B will get Rs. 2 and C will get Rs. 3. This ratio is used to distribute the profits among the partners.

Problem Statement:
From April 1, 2016, the partners have decided to change the profit sharing ratio to 2:3:4. This means that for every Rs. 2 of profit, A will get Rs. 2, B will get Rs. 3 and C will get Rs. 4. This change in ratio will impact the distribution of profits among the partners.

Debit balance in Profit and Loss Account:
On April 1, 2016, the Profit and Loss Account of the partnership showed a debit balance of Rs. 90,000. This indicates that the partnership has incurred losses in the past and the losses have not been fully recovered.

Impact of change in Profit Sharing Ratio:
The change in the profit sharing ratio from 1:2:3 to 2:3:4 will impact the distribution of profits among the partners. Under the new ratio, B and C will receive a higher share of profits as compared to A.

Adjustment for Debit Balance:
The debit balance of Rs. 90,000 in the Profit and Loss Account needs to be adjusted before distributing the profits among the partners. The partners can decide to either absorb the loss or carry it forward to the next accounting period.

Conclusion:
Partnership is a popular business structure where two or more individuals come together to carry out a business activity. The profits and losses of the partnership are shared among the partners as per their agreed ratio. In case of a change in the profit sharing ratio or a debit balance in the Profit and Loss Account, adjustments need to be made before distributing the profits among the partners.