Question

X Y Z are partners sharing profit and losses in the ratio of 3:2:1. Z retires and they
decided to share B profit/loss in the ratio 2:1. Following are the record in their books:-
General reserve
100,000
Profit/loss A/C
45000
Advertisement suspense A/C 25000
Record necessary journal entries.​

Answer 1

general reserve account...... Dr. 1,00,000

profit and loss account......... Dr. 45,000

to X's capital account 72,500

to Y's capital account 48,333

to Z's capital account 24,667

X's capital account...... dr. 12,500

Y's capital account...... Dr. 8333

Z's capital account...... Dr. 4167

to advertisment suspense 25,000