Amar and Akbar are partners sharing profits in the ratio of 3:2. They changed their profit sharing ratio to 2:3 w.e.f. 1st April, 2021. The Balance Sheet as on the date of change in profit sharing ratio showed credit balance in Profit and Loss Account of 1,00,000 which the partners decide to carry forward and not distribute. The balance of 1,00,000 will be adjusted by:
a) Crediting Amar's Capital Account and Debiting Akbar's Capital Account by ₹1,00,000
b) Crediting Amar's Capital Account and Debiting Akbar's Capital Account by ₹20,000
c) Debiting Amar's Capital Account and Crediting Akbar's Capital Account by ₹1,00,000
d) Debiting Amar's Capital Account and Crediting Akbar's Capital Account by ₹20,000
Answers
Answered by
2
Answer:
answer (b)
Explanation:
Amar s sacrifice = 3/5-2/5 = 1/5
Akbar's gain = 1/5
Akbar will give 1/5th of 1,00,000 to Amar before they follow the new ratio, which is 20,000
Amars capital a/c will be credited and Akbar's capital a/c will be debited by 20000.
hope it helps. remember to mark brainliest
thank you
Similar questions