# Question 9 Chapter 4 – Unimax Class 12 Part 1 – 2021

Question 9 Chapter 4 – Unimax Class 12 Part 1

9. A, B and C are three partners sharing Profits and Losses in ratio of 5 : 3 : 2. They decide to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2021. They also decide to record the effect of the following accumulated profits, losses and reserves without affecting their book figures by passing a single adjusting entry.
General Reserve Rs. 24000
Profit and Loss A/c Rs. 6000 (Cr.)
You are required to pass the necessary single adjusting entry.

## The solution of Question 9 Chapter 4 – Unimax Class 12 Part 1

 Old Share New Share Difference X              5/10 2/10 5/10_2/10=3/10 (Sacrifice) Y              3/10 3/10 3/10_3/10=0 (No change) Z              2/10 5/10 2/10_5/10=[3/10] (Gain)

Net Accumulated Profits = General Reserve + Profits & Loss A/c (Cr.) – Advertisement Suspense Account
= Rs. 24000 + Rs. 6000 – Rs. 12000
= Rs. 18000
C will pay to A Rs. 5400 ( 18000 x 3/10), on change in profit sharing ratio.

Journal

 Date Particulars L.F. Debit Credit April 1 2007 C’s Capital A/c Dr. 5400 To A’s Capital A/c 5400 (Being adjustment entry Passed for treatment of accumulated profits and losses on change in constitution)

What is Partnership – Meaning and its Types

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)