A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. C retires and new profit sharing ratio is agreed at 3 : 1
A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. C retires and new profit sharing ratio is agreed at 3 : 1. They also decided to record the effect of the following without affecting their book values:
You are required to pass the necessary single adjusting entry.
[Ans. Debit A’s Capital A/c by ₹ 30,000; Credit B’s Capital A/c by ₹ 10,000 and C’s Capital A/c by ₹ 20,000.]
| ₹ | |
| General Reserve | 1,00,000 |
| Profit & Loss Account | 45,000 |
| Advertisement Suspense Account | 25,000 |
Anurag Pathak Answered question 1 day ago
