Question

X, Y and Z are sharing profits and losses in the ratio of 5:3:2. They decide to share future profits
and losses in the ratio of 2:3:5 with effect from 1st April, 2002. They also decide to record the effect
of the reserves without affecting their book figures, by passing a single adjusting entry.
General Reserve Rs. 40,000
Profit And loss A/C (Cr) Rs. 10,000
Advertisement Suspense A/C(Dr) Rs. 20,000
Pass the necessary single adjusting entry

Answer 1

find sacrificing ratio
X 5÷10-2÷10=3÷10 sacrificer

Y 3-3÷10=0
Z 2÷10-5÷10=3÷10 gainer
j.e
z a/c. dr. 30000×3÷10. 9000
To x a/c. 9000