1.

X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2 . They decided to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2018. They also decided to record the effect of the following accumulated profits,losses and reserves without affecting their book values by passing a single entry . Book Value(₹) General Reserve 6,000 Profit and Loss A/c ( Credit) 24,000 Advertisement Suspense A/c 12,000 Pass an Adjustment Entry.

Answer» X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2 . They decided to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2018. They also decided to record the effect of the following accumulated profits,losses and reserves without affecting their book values by passing a single entry .





















Book Value(₹)
General Reserve 6,000
Profit and Loss A/c ( Credit) 24,000
Advertisement Suspense A/c 12,000



Pass an Adjustment Entry.


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