Question

A and B are partners in firm sharing profit ratio of 3:2 . They decided to share profit in the ratio of 3:4 w.e.f., april 1,2016 . On that day their was a credit balance of RS-70000 in their profit and loss account . Pass the necessary journal entry assuming that partners decide to distribute the profit

Answer 1

Answer:

A's capital A/c ---- Dr. 42000

B's capital A/c ---- Dr. 28000

To,Profit and loss A/c. 70000

(Being debit balance of profit and loss shared in old ratio)

Explanation:

Answer 2

Answer:

P/l a/c Dr. 70,000

To A's capital a/c. 42,000

To B's capital a/c. 28,000

(Credit balance of p/l a/c transferred in old ratio)