Question

A, B, C and D are partners sharing profits in the ratio of 4:3:2:2.c retires and the remaining pares decided to share future profits in 5:3:2. On the date C's retirement there was a debit balance of 30,800rupees in the profit and loss account Show the necessary journal entry for the treatment of profit and loss account balance.

Answer 1

Answer:

Profit and loss a/c ____ dr. 30800

To A's capital a/c 15400

To B's capital a/c 9240

To D's capital a/c 6160

Explanation:

(being profit and loss transfer into partners capital accounts )