Question

. A, B and C are partners in a firm sharing profit in the ratio 1:2:3. On 1-4-2019 to share profits equally. On the date there was a credit balance of Rs. 120000 in their profit & loss account and a balance of Rs. 1,80,000 in General Reserve account . Instead of closing the general reserve account and profit and loss account, it is decided to record an adjustment entry for the same. In the necessary adjustment entry to give effect to the above arrangement entry to give effect to the above arrangement:​

Answer 1

Answer:

C's capital a/c. Dr. 50000

To A's capital a/c. 50000

(being gaining partner give the share to sacrificing partner)