Question

vikram and abhishek are partners sharing profits and losses in the ratio of 8:5 they admitted avishi and decode that the profit sharing ratio between abhishek and avishi shall be the same as existing between vikram and abishek
calculate new profit sharing ratio ?

Answer 1

DRR is created out of profits of the company & is debited to the statement of P&L(which means profit is reduced). now at the time of redemption of debentures, DRR is transferred to general reserve to give effect to the earlier reduction in profit.