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
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
Ans – b)
Explanation:-
In the absence of any given information, all accumulated losses are transferred to partners in their old profit sharing ratiol.
Anurag Pathak Changed status to publish May 5, 2023
