Question : Adiraj and Karan were partners in a firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 the firm was dissolved. After the transfer of assets (other than cash in hand and at the bank) and third-party liabilities to the Realization Account, the following information was provided:
Question:
Profit and Loss Account showed a debit balance of Rs. 50,000. The entry will be
Option 1: Adhraj 's capital account debited Rs 30,000, Karan's capital account debited Rs 20,000 credited profit and loss account Rs 50,000
Option 2: Debited profit and loss account with Rs 50,000 credited Adhiraj's capital account by Rs 30,000 a and karan's capital account by Rs 20,000
Option 3: Debited realization account and credited partner's capital account with Rs 50,000
Option 4: None of the above
Correct Answer: Adhraj 's capital account debited Rs 30,000, Karan's capital account debited Rs 20,000 credited profit and loss account Rs 50,000
Solution : Answer = Adhraj 's capital account debited 30,000, Karan's capital account debited RS 20,000 credited to the profit and loss account Rs 50,000
Undistributed Losses (Profit and loss Dr) will Be distributed among the old Partners in their profit-sharing Ratio.
Partners capital AIC or.
To Profit and lose A/C
[In old Profit sharing Ratio]
Hence, the correct option is 1.
