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.

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Solution

Journal

Date
2018

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

April 1

A’s Capital A/c

Dr.

80,000

B’s Capital A/c

Dr.

20,000

To Profit & Loss A/c

1,00,000

(Profit & Loss distributed)

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Journal
Date 2018	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

April 1	A’s Capital A/c	Dr.		80,000
	B’s Capital A/c	Dr.		20,000
	To Profit & Loss A/c				1,00,000
	(Profit & Loss distributed)

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.

Journal Date 2018 Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) April 1 A’s Capital A/c Dr. 80,000 B’s Capital A/c Dr. 20,000 To Profit & Loss A/c 1,00,000 (Profit & Loss distributed)

Journal

Date
2018

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

April 1

A’s Capital A/c

Dr.

80,000

B’s Capital A/c

Dr.

20,000

To Profit & Loss A/c

1,00,000

(Profit & Loss distributed)