# Question 11 Chapter 4 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

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 = 1,50,000 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. 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