17. Harish and Manish are partners sharing profits in the ratio of 4: 1. They decided to distributed profits
equally starting 1st April 2019. Their balance sheet as on 31st March 2019 shows a balance of advertisement
suspense of 40.000 Pass the journal entry at the time of change in profit shanng ratio
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2
Answer:
The amount of 40,000 is written off against their capital accounts in old ratio.
In 4:1, amounts will be 32,000 and 8,000, which is written off in Harish and Manish capital accounts respectively.
Explanation:
Answered by
3
Explanation:
Advertisment account Dr. 40000
To Harish's capital. 32000
To Manish's capital. 8000
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