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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

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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)

 

 

 

 

  Is there an error in this question or solution?

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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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