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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Nitya and Anand are partners in a firm sharing profits and losses in the ratio of 3 : 2. With effect from 1st April, 2025, they decided to share future profits equally. On the date of change, the Profit & Loss Account showed a credit balance of ₹1,50,000. Record the necessary Journal entry for the distribution of the balance in the Profit & Loss Account immediately before the change in the profit-sharing ratio.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2025 Apr 1 | Profit & Loss A/c Dr. | 1,50,000 | ||
| To Nitya’s Capital A/c (1,50,000 × 3/5) | 90,000 | |||
| To Anand’s Capital A/c (1,50,000 × 2/5) | 60,000 | |||
| (Balance in Profit & Loss A/c distributed in the old ratio 3 : 2) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 3 Q.12 - Change in Profit-Sharing Ratio Among the Existing Partners", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 3 - Change in Profit-Sharing Ratio Among the Existing Partners.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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