Question

Or
X, Y and Z sharing profits and losses in the ratio 3:2:1. On 1-04-2019 they decided to share the profits equally. On that
dake there was a credit balance of 1,20,000 in their profit and loss Account and a balance of 60,000 in general
reserve Account. Record the necessary journal entry in the books of the firm. The partners decided to distribute the
profit and the general reserve before bringing the new profit sharing Ratio into force.​

Answer 1

Answer:

profit and loss a/c. Dr. 1,20,000

general reserve a/c. Dr. 60,000

To X's capital a/c. 90,000

To Y's capital a/c. 60,000

To Z's capital a/c. 30,000