1.

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,2018 . On that day, Profit and Loss Account showed a debit balance of ₹ 1,00,000.Pass journal entry to give effect to the above.

Answer»

n:                                                       Journal  Date                      Particulars                     L.F.    Debit Rs.       Credit Rs.                           A's CAPITAL A/c              DR.            80,000                           B's Capital A/c              Dr.            20,000                               To Profit and LOSS A/c                                  1,00,000                 (Being Profit and Loss distributed)



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