Question

Amit and Viney are partners in a firm sharing profits and losses in 3:1 ratio. On 1.1.2017 they admitted Ranjan as a partner. On Ranjan’s admission the profit and loss account of Amit and Viney showed a debit balance of Rs 40,000. Record necessary journal entry for the treatment of the same.

Answer 1

Books of Amit, Viney and Ranjan Journal
Date	Particulars			L.F.	Amount Rs	Amount Rs
2017
Jan 1	Amit’s Capital A/c		Dr.		30,000
	Viney’s Capital A/c		Dr.		10,000
		To Profit and Loss A/c				40,000
	(Debit Balance in Profit and Loss Account written off)