Question

1
Red, Blue and White were partners in a firm sharing profits in the ratio
of 1:2:2. They decided to share future profits in the ratio of 7:5:3 with
effect from 1st April, 2019. Their Balance Sheet as on that date showed a
balance of 22,500 in Deferred Revenue Expenditure Account. The
amount to be debited respectively to the capital accounts of Red, Blue and
White for writing off Deferred Revenue Expenditure will be:
(A) 7,500, 7,500, and 7,500
(B) 4,500, 39,000, and 9,000
(C) 10,500, 7,500, and 4,500
(D) 11,250, Nil, and 11,250
67/1/3
P.T.O.
3​

Answer 1

Answer:

B is the answer. follow me

Answer 2

The correct option is (b) 4,500, 9,000, and 9,000

Explanation:

when partners in a partnership firm decide to change their profit sharing ratio, they try to write off the old reserves or goodwill of the firm at the end of that year or any other expenditure in their old profit sharing ratio so that they can start the next year with their new profit sharing ratio.

here it is given that old profit sharing ratio of red, blue and white is 1:2:2 which is later to be changed to 7:5:3 so they decide to write off the balance of deferred revenue expenditure by debiting it to  their capital accounts. this deferred revenue expenditure will be written off in their old profit sharing ratio which is 1:2:2

balance of deferred revenue expenditure = 22,500

balance to be debited to Red's capital a/c = 22,500 * 1/5

                                                                    = 4,500

balance to be debited to Blue's capital account = 22,500 * 2/5

                                                                                = 9,000

balance to be debited to White's capital account = 22,500 * 2/5

                                                                                  = 9,000