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# A And B Are Partners in a Firm Sharing Profits in the Ratio of 4 : 1. They Decided to Share Future Profits in the Ratio of 3 : 2 W.E.F. 1st April, 2019 - CBSE (Arts) Class 12 - Accountancy

ConceptRetirement and Death of a Partner - Calculation of New Profit Sharing Ratio

#### Question

A and B are partners in a firm sharing profits in the ratio of 4 : 1. They decided to share future profits in the ratio of 3 : 2 w.e.f. 1st April, 2019. On that day, Profit and Loss Account showed a debit balance of ₹ 1,00,000. Pass Journal entry to give effect to the above.

#### Solution

Journal

 Date Particulars L.F. Debit Amount (₹) Credit Amount (₹) 2019 April 1 A’s Capital A/c Dr. 80,000 B’s Capital A/c Dr. 20,000 To Profit & Loss  A/c 1,00,000 (Profit & Loss  distributed)
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#### APPEARS IN

Solution A And B Are Partners in a Firm Sharing Profits in the Ratio of 4 : 1. They Decided to Share Future Profits in the Ratio of 3 : 2 W.E.F. 1st April, 2019 Concept: Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio.
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