Question

P, Q and R are partners in a firm sharing profits in the ratio of 2:2:1 on 1.4.2007 the partners decided to share

future profits in the ratio of 3:2:1. On that day balance sheet of the firm shows General Reserve of 50,000. Pass

necessary entry for distribution of reserve.​

Answer 1

Answer:

general reserve a/c ... Dr 50,000

To p' s capital a/c. 20,000

To Q's Capital a/c 20,000

To T's Capital a/c. 10,000

Explanation:

general reserve as to distribute in old ratio