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Amar and Karam are partners sharing profits in the ratio of 3 : 2 before they changed the profit sharing ratio to equal. The Balance Sheet as on the date of change in profit sharing ratio showed debit balance in Profit & Loss Account of ₹ 50,000. The balance of ₹ 50,000 should

a) be carried forward in the Balance Sheet as it is

b) be transferred to their respective Capital Accounts in the ratio of 3 : 2

c) be transferred to their respective Capital Accounts in the ratio of 1 : 1

d) None of the above

Anurag Pathak Changed status to publish May 5, 2023
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