Aman and Akbar are partners sharing profits in the ratio of 3 : 2. They changed their profit sharing ratio to 2 : 3 w.e.f 1st April, 2023. The Balance Sheet as on the date of change in profit sharing ratio showed credit balance in Profit & Loss Account of ₹ 1,00,000, which the partners decide to carry forward and not distribute. The balance of ₹ 1,00,000 will be adjusted by
Aman and Akbar are partners sharing profits in the ratio of 3 : 2. They changed their profit sharing ratio to 2 : 3 w.e.f 1st April, 2023. The Balance Sheet as on the date of change in profit sharing ratio showed credit balance in Profit & Loss Account of ₹ 1,00,000, which the partners decide to carry forward and not distribute. The balance of ₹ 1,00,000 will be adjusted by
a) Crediting Amar’s Capital Account and Debiting Akbar’s Capital Account by ₹ 1,00,000
b) Crediting Amar’s Capital Account and Debiting Akbar’s Capital Account by ₹ 20,000
c) Debiting Amar’s Capital Account and Crediting Akabar’s Capital Account by ₹ 1,00,000
d) Debiting Amar’s Capital Account and Crediting Akabar’s Capital Account by ₹ 20,000
Anurag Pathak Changed status to publish May 5, 2023
Ans – b)
Solution:-
Old Ratio = 3 : 2
New Ratio = 2 : 3
Calculation of Sacrifice/gain of partners
Amar = 3/5 – 2/5 = 3 – 2/5 = 1/5 (sacrifice)
Akbar = 2/5 – 3/5 = 2 – 3/5 = – 1/5 (Gain)
Amar share in profit and loss = 1,00,000 × 1/5 = ₹ 20,000 (credit)
Akbar share in profit and loss = 1,00,000 × 1/5 = ₹ 20,000 (debit)
Journal Entry
Akbar’s Capital A/c Dr. 20,000
To Amar’s Capital A/c 20,000
Anurag Pathak Changed status to publish May 5, 2023
