Question

X; Y and Z are partners sharing profits and losses in the ratio of 4 : 3 : 2. Y retires and X and Z decide to share future profits and losses in the ratio of 5 : 3. On the date of Y’s retirement, their Balance Sheet disclosed Dr. Balance of Profit & Loss A/c amounting to ₹ 2,70,000. Partners decide to record the effect of change in profit sharing ratio by a single journal entry. You are required to record the same.

Answer 1

Journal
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	Y’s Capital A/c        ...Dr.		90,000
	To X’s Capital A/c			48,750
	To Z’s Capital A/c			41,250