Question : A, B and C are partners sharing profit and losses in the ratio 2: 3: 4. On 31st December 2022. A retired and B and C decided to share future profit in the ratio of 2: 1. The following balances appeared in the books on this date Profit and loss (CR) 72,000 General reserve Rs 27,000 The correct journal entry for the above will be .........
Option 1: General reserve A/c.........Dr 27,000 Profit and loss A/c............Dr 72,000 To A's capital a/c 33,000 To B's capital a/c 33,000 To C's capital A/c 33,000
Option 2: General reserve A/c........Dr 27,000 Profit and loss A/c...........Dr 72,000 To A's capital a/c 22,000 To B's capital a/c 33,000 To C's capital A/c 44,000
Option 3: General reserve A/c........Dr 27,000 Profit and loss A/c..........Dr 72,000 To B's capital a/c 33,000 To C's capital A/c 66000
Option 4: None of the above
Correct Answer: General reserve A/c........Dr 27,000 Profit and loss A/c...........Dr 72,000 To A's capital a/c 22,000 To B's capital a/c 33,000 To C's capital A/c 44,000
Solution : Answer (2) General reserve A/c........Dr 27,000 Profit and loss A/c...........Dr 72,000 To A's capital a/c 22,000 To B's capital a/c 33,000 To C's capital A/c 44,000 [Old ratio= 2:3:4] Hence, the correct option is 2.
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