Question 11 Chapter 4 of +2-A

Question 11 Chapter 4 of +2-A

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=1,50,000X3
5
 =90,000  

 

Amount of Profit Credited to B’s Capital=1,50,000X2
5
 =60,000  



In the Books of _______________
DateParticulars
L.F.DebitCredit
2019     
April 1Profit and Loss A/cDr 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)

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

2 Book 1 min - Question 11 Chapter 4 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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