Question 11 Chapter 4 of +2-A
Table of Contents
11. X and Y are partners in a firm sharing profits and losses in the ratio of 3: 2. With effect from 1st April 2019, they decided to share future profits equally. On the date of the 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 in the Profit and Loss Account immediately before the change in the profit-sharing ratio.
The solution of Question 11 Chapter 4 of +2-A
Adjustment of profit for the year March 2019: –
| Amount of Profit Credited to A’s Capital | = | 1,50,000 | X | 3 |
| 5 | ||||
| = | 90,000 |
| Amount of Profit Credited to B’s Capital | = | 1,50,000 | X | 2 |
| 5 | ||||
| = | 60,000 |
| In the Books of _______________ | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2019 | |||||
| April 1 | Profit and Loss A/c | Dr | 1,50,000 | ||
| To X’s Capital A/c | 90,000 | ||||
| To Y’s Capital A/c | 60,000 | ||||
| (Beingbalance of profit and loss account distributed among the partner in the old ratio.) | |||||
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
