Nasim and Parvez are partners sharing profits equally. They changed their profit sharing ratio to 2 : 3 w.e.f 1st April 2023. The assets were revalued, and liabilities were reassessed on that date which resulted in a loss of ₹ 80,000. It will be transferred to their capital account by
Nasim and Parvez are partners sharing profits equally. They changed their profit sharing ratio to 2 : 3 w.e.f 1st April 2023. The assets were revalued, and liabilities were reassessed on that date which resulted in a loss of ₹ 80,000. It will be transferred to their capital account by
a) Debiting Nasim’s Capital Account and Parvez’s Capital Account by ₹ 40,000 each.
b) Debiting Nasim’s Capital Account and Parvez’s Capital Account by ₹ 80,000 each
c) Crediting Nasim’s Capital Account and Parvez’s Capital Account by ₹ 40,000 each
d) Crediting Nasim’s Capital Account and Parvez’s Capital Account by ₹ 80,000 each
Anurag Pathak Changed status to publish May 5, 2023
Ans – a)
solution
Old Ratio = 1 : 1
Nasim’s Share in revaluation Loss = 80,000 × 1/2 = ₹ 40,000
Parvez Share in revaluation Loss = 80,000 × 1/2 = ₹ 40,000
Journal entry
Nasim’s Capital A/c Dr. 40,000
Parvez’s Capital A/c Dr. 40,000
To Revaluation A/c 80,000
Anurag Pathak Changed status to publish May 5, 2023
