Question

Aarti,Bharti and Chandni were partners in the firm sharing profits and losses in the ratio of 5:4:1.They decided to share the profits and Losses equally from 1st April 2021.The Revaluation resulted in the loss of Rs 5,000 .The firm had a balance of Rs 2,000 in the General Reserve . They did not want to bring the changed figures in the books .so they decided to record an adjustment Entry .What will be the correct Journal Entry?

pls help me in this question ​

Answer 1

Answer:

Profit and Loss Appropriation a/c

(for the year ended 31st March,2018)

Dr. Cr.

Particulars Amount Particulars Amount

To Interest on Capital:

- X

- Y

- Z

50000

50000

25000 By Profit and Loss a/c

(after charging Z's salary) 400000

To Profit transferred to:

- X's Capital a/c

- Y's Capital a/c

- Z's Capital a/c

110000

110000

55000

400000