Question

Amit, Archit and Akshat are partners in a firm in the ratio of 3 : 2 : 1. On 1st April, 2026 they decided to share the profits in future in the ratio of 7 : 5 : 4. On this date General Reserve is ₹ 38,000 and profit on revaluation of assets and liabilities being ₹ 34,000. It was decided that adjustment should be made without altering the figures in the Balance Sheet. Make adjustment by one single journal entry.

Answer 1

Journal Entry
Date	Particulars	L.F.	Dr. ₹	Cr. ₹
	Akshat’s Capital A/c   ...Dr.		6,000
	To Amit’s Capital A/c			4,500
	To Archit’s Capital A/c			1,500
	(Being adjustment made for General Reserve and profit on revaluation due to change in profit-sharing ratio, without altering the Balance Sheet figures.)

Old profit-sharing ratio:

Amit : Archit : Akshat = 3 : 2 : 1

New profit-sharing ratio:

Amit : Archit : Akshat = 7 : 5 : 4