Question 12 Chapter 4 of +2-A
Table of Contents
12. A and B are partners in a firm sharing profits in the ratio of 4 : 1. They
decided to share future profits in the ratio of 3 : 2 w.e.f. 1st April, 2019. On that day, Profit and Loss Account showed a debit balance of 1,00,000. Pass Journal entry to give effect to the above.
The solution of Question 12 Chapter 4 of +2-A
Adjustment of profit for the year March 2019: –
| Amount of Profit Debited to A’s Capital | = | 1,00,000 | X | 4 |
| 5 | ||||
| = | 80,000 |
| Amount of Profit Credited to B’s Capital | = | 1,00,000 | X | 1 |
| 5 | ||||
| = | 20,000 |
| In the Books of _______________ | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| A’s Capital A/c | Dr | 80,000 | |||
| B’s Capital A/c | Dr | 20,000 | |||
| To Profit and Loss A/c | 1,00,000 | ||||
| (Being balance 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
