Due to change in profit sharing ratio, X’s sacrifice is 3/10, while z’s gain is 3/10. They decide to record the effect of the following without affecting the book figures. by passing an adjusting entry:

General Reserve ₹ 35,000
Profit and Loss (Cr.) ₹ 15,000
Advertisement Suspense A/c (Dr.) ₹ 20,000

The necessary adjustment entry will be

a) Dr. Z and Cr. X by ₹ 9,000

b) Dr. X and Cr. Y by ₹ 9,000

c) Dr. X and Cr. Y by ₹ 18,000

d) Dr. Y and Cr. X by ₹ 9,000

Anurag Pathak Changed status to publish May 5, 2023
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