$X$ and $Y$ are partners in a firm sharing profits and losses in the ratio of $3 : 2$ , With effect from $1 s t$ April, $2018$ , they decided to share future profits equally. On the date of change in the profit-sharing ratio, the Profit and Loss Account showed a credit balance of Rs. $1, 50, 000$ . Record the Journal entry for the distribution of the balance in the profit and Loss Account immediately before the change in the profit-sharing ratio.

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Solution

Profit and Loss A/c..... Dr. 150000
To X's Capital A/c 90000
To Y's Capital A/c 60000
(Being profit distributed in old ratio)

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Q. X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2 . With effect from 1st April, 2018, they decided to share future profits equally. On the date of change in the profit-sharing ratio, the Profit and Loss Account showed a credit balance of ₹ 1,50,000. Record the necessary journal entry for the distribution of the balance int he Profit and Loss Account immediately before the change in the profit-sharing ratio.

A and B are partners sharing profits and losses in the ratio of 2:1. From April 1, 2017, they decided to share the profits in the ratio of 3:2. On that date, profit and loss account showed a debit balance or Rs 60,000. Record the necessary journal entry for the distribution of the balance in the Profit and Loss Account.

X, Y

and

Z

are partners in a firm sharing profits in

3 : 3 : 2

ratio. They decide to share profits equally w.e.f. April

1, 2018

On that date, the Profit and Loss Account shows the credit balance of Rs.

60, 000

They decide that Profit and Loss Account will remain as it is. You are required to fill up the following Journal entry:

Date	Particulars	L.F.	Dr. (Rs.)	Cr. (Rs.)
2018 April 1	? ....Dr To ? To ? (Being adjustment made for credit balance of Profit and Loss Account due to change in profit-sharing ratio)		?	? ?