Question

chintu and chinti are partners sharing profits and losses in 2:1 ,they decided to change the ratio to1:1 .On that day a general reserve of 60000 and P/L (dr) 30000 stood in their books . The accounting treatment will be.

Answer 1

Answer:

general reserve. and profit and loss will distributed through their sacrificing ratio

and

sacrificing ratio :- old ratio - new ratio