Om and Shiv are partners in a firm sharing profits in the ratio of 4 : 1. They decided to share future profits in the ratio of 3 : 2 w.e.f 1st April, 2023. On that day, the Profit and Loss Account showed a debit balance of ₹ 1,00,000. Pass Journal entry to give effect to the above. [Ans.: Dr. Om’s Capital A/c by ₹ 80,000 and Shiv’s Capital A/c by ₹ 20,000; Cr. Profit and Loss A/c by ₹ 1,00,000.]
Om and Shiv are partners in a firm sharing profits in the ratio of 4 : 1.
They decided to share future profits in the ratio of 3 : 2 w.e.f 1st April, 2023.
On that day, the Profit and Loss Account showed a debit balance of ₹ 1,00,000.
Pass Journal entry to give effect to the above.
[Ans.: Dr. Om’s Capital A/c by ₹ 80,000 and Shiv’s Capital A/c by ₹ 20,000; Cr. Profit and Loss A/c by ₹ 1,00,000.]
Anurag Pathak Changed status to publish April 29, 2023
