Question 10 Chapter 4 of Class 12 Part – 1 Usha Publication

Question 10 Chapter 4 of Class 12 Part – 1 Usha Publication

10. (Distribution of Profit and loss account) Sita and Geeta share the profit in 3:2 ratio. On 1st April 2016, the P & L a/c (debit) showed Rs.50,000. They changed their profit sharing ratio to 2:1 but before this change, they distributed the balance in profit and loss a/c.
Pass journal entry.

The solution of Question 10 Chapter 4 of Class 12 Part – 1 Usha Publication: -

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Journal

Date	Particulars		L.F.	Debit	Credit
1.	Sita’s Capital A/c (50,000 x 3/5)	Dr.		30,000
	Geeta’s Capital A/c (50,000 x 2/5)	Dr.		20,000
	To Profit and loss A/c				50,000
	(Being Balance of P & L A/c distributed among partners in old Profit Sharing Ratio)

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