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

Question 12 Chapter 4 of +2-A

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 2019 April 1 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. 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