$A$ and $B$ are partners in a firm sharing profits in the ratio of $4 : 1$ . They decided to share future profit in the ratio of $3 : 2$ w.e.f. $1 s t$ April, $2018$ . On that day, Profit and Loss Account showed a debit balance of Rs. $1, 00, 000$ . Pass Journal entry to give effect to the above.

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Solution

A's Capital A/c..............Dr. 80000
B's Capital A/c...............Dr. 20000
To Profit and Loss A/c 100000
(Being debit balance of profit and loss shared in old ratio)

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A and B are partners in a firm sharing profits in the ratio of 4:1 . They decided to share future profit in the ratio of 3:2 w.e.f. 1st April, 2018 . On that day, Profit and Loss Account showed a debit balance of Rs. 1,00,000 . Pass Journal entry to give effect to the above.

A's Capital A/c..............Dr. 80000B's Capital A/c...............Dr. 20000To Profit and Loss A/c 100000(Being debit balance of profit and loss shared in old ratio)

$A$ and $B$ are partners in a firm sharing profits in the ratio of $4 : 1$ . They decided to share future profit in the ratio of $3 : 2$ w.e.f. $1 s t$ April, $2018$ . On that day, Profit and Loss Account showed a debit balance of Rs. $1, 00, 000$ . Pass Journal entry to give effect to the above.

A's Capital A/c..............Dr. 80000
B's Capital A/c...............Dr. 20000
To Profit and Loss A/c 100000
(Being debit balance of profit and loss shared in old ratio)