Question

A,B and C are partners in a firm sharing profit and loss in the ratio 5:3:2. They decided to share the profits in the ratio of 2:3:5.Starting 1st April, they decided to adjust the following accumulated profits and loss and Reserves without affecting their book values by passing an adjustment entry.
book values
profit and loss account 15,000
general reserve 60,000
advertising suspense account 30,000 .​

Answer 1

Explanation:

I think your question is wrong...As per my information the partners should have been gain the profit...

Answer 2

Answer:

JOURNAL ENTRY

C's capital a/c. dr. 5400

To A's capital a/c. 5400

net amount = general reserve + profit- advertisement suspense

= 6000+24000-12000

=18000

Explanation:

gaining/sacrificing ratio

A = 5/10-2/10 = 3/10 (sacrifice)

B = 3/10-3/10 = NIL

C = 2/10-5/10 = -3/10 (gain)

amount of adjustment entry :

net amount * sacrifice /gain share

18000 * 3/10 = 5400