Question

And C were partner in a firm sharing profits in the ratio of 5:3:2.On 1-1-2015 they admitted D as a new partner for (1)/(10) th share in the profits.On D's admission the Profit and Loss A/c of the firm was showing a debit balance of ₹20 000 which was credited by the accountant of the firm to the capital accounts of A B and C in their profit sharing ratio.Did the accountant give correct treatment? Give reason in support of your answer.​

Answer 1

Answer:

refer the attachment

And C were partner in a firm sharing profits in the ratio of 5:3:2.On 1-1-2015 they admitted D as a new partner for (1)/(10) th share in the profits.On D's admission the Profit and Loss A/c of the firm was showing a debit balance of ₹20 000 which was credited by the accountant of the firm to the capital accounts of A B and C in their profit sharing ratio.Did the accountant give correct treatment

Answer 2

NEW RATIO IS --- 24 : 13 : 5 : 6