Question

Existing partners capital accounts to be adjusted on the basisq of profit sharing ratio of new firm taking mital's capital as base........how can i solve this adjustment in revaluation account and balance sheet

Answer 1

Answer:

Step 2: The new capital of each partner is calculated by dividing the total capital of the firm by their individual new profit share. Step 3: After posting all adjustments and items in the Partners' Capital Account, calculate credit minus debit side of the old Partners' Capital Account.