Question

Joey, Sam and Tex were partners sharing profits and losses in the ratio 5 : 3 : 2. W.e.f. 01 April, 2024, they decided to share future profits and losses in the ratio 2 : 1 : 1. For which of the following balances Tex will be credited at the time of reconstitution of the firm if the firm decides to continue with available accumulated profits and losses balances?

Options

• General Reserve ₹ 2,00,000 and Profit and Loss (Dr.) ₹ 1,20,000

• General Reserve ₹ 2,00,000 and Profit and Loss (Cr.) ₹ 2,50,000

• Deferred Revenue Expenditure ₹ 50,000 and Profit and Loss (Cr.) ₹ 80,000

• Deferred Revenue Expenditure ₹ 50,000 and Profit and Loss (Dr.) ₹ 80,000

Answer 1

Deferred Revenue Expenditure ₹ 50,000 and Profit and Loss (Dr.) ₹ 80,000