Question

Illustration 13.
A, B and C are partners in a firm sharing profits in the ratio of 3:3:2. They decided to
share profits equally w.e.f. 1st April, 2020. On that date, General Reserve showed credit
balance of ? 72,000. Instead of distributing the General Reserve, it was decided to record
an adjustment entry reflecting the change in the profit-sharing ratio.
Pass Journal entry to give effect to the same.
Solution:
JOURNAL

Answer 1

Answer:

Illustration 13.

A, B and C are partners in a firm sharing profits in the ratio of 3:3:2. They decided to

share profits equally w.e.f. 1st April, 2020. On that date, General Reserve showed credit

balance of ? 72,000. Instead of distributing the General Reserve, it was decided to record

an adjustment entry reflecting the change in the profit-sharing ratio.

Pass Journal entry to give effect to the same.

Solution:

JOURNAL

Answer 2

Answer:

plz support the upper answer