P, Q, and R are partners sharing profits and losses in the ratio of 3:2:1. R retired. Future profit sharing ratio is 2:1. There was a joint life policy of Rs.6,00,000 with a surrender value of Rs.80,000. What will be the treatment in the Partner’s Capital A/c’s, if JLP is maintained at surrender value along with reserve?

• A. Rs.6,00,000 to be distributed to all the partners in old ratio
• B. Rs.5,20,000 to be distributed to all the partners in old ratio
• C. Rs.80,000 to be distributed to all the partners in old ratio
• D. Distribute JLP reserve account in old profit sharing ratio.