Question

Red, Blue and White were partners in a firm sharing profits in the ratio of 1 : 2 : 2. They decided to share future profits in the ratio of 7 : 5 : 3 with effect from 1st April, 2019. Their Balance Sheet as on that date showed a balance of ₹ 22,500 in Deferred Revenue Expenditure Account. The amount to be debited respectively to the capital accounts of Red, Blue and White for writing off Deferred Revenue Expenditure will be:

विकल्प

• ₹ 7,500, ₹ 7,500 and ₹ 7,500

• ₹ 4,500, ₹ 9,000 and ₹ 9,000

• ₹ 10,500, ₹ 7,500 and ₹ 4,500

• ₹ 11,250, Nil and ₹ 11,250

Answer 1

₹ 4,500, ₹ 9,000 and ₹ 9,000

Explanation:

Given:

Old ratio = 1 : 2 : 2

New ratio = 7 : 5 : 3 (not relevant for writing off old DRE)

Deferred Revenue Expenditure = ₹ 22,500

Distribution in old ratio (1 : 2 : 2)

Total parts = 1 + 2 + 2 = 5

Red = `22,500 xx 1/5 = 4,500`

Blue = `22,500 xx 2/5 = 9,000`

White = `22,500 xx 2/5 = 9,000`