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Question : J, K and T are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They decided to share future profits equally. The Profit and Loss Account showed a Credit balance of Rs 45,000 and a General Reserve of Rs 45,000. If these are not to be shown in balance sheet, in the journal entry :

Option 1: Cr. J by RS 15,000: Dr. T by Rs 15,000

 

Option 2: Dr. J by Rs 15,000; Cr. T by Rs 15,000

Option 3: Cr. J by Rs 45,000; Cr. K by Rs 30,000; Cr. T by Rs 15,000

Option 4: Cr. J by Rs 30,000; Cr. K by Rs 30,000; Cr. T by Rs 30,000


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Cr. J by Rs 45,000; Cr. K by Rs 30,000; Cr. T by Rs 15,000


Solution : Answer = Cr. J by Rs 45,000; Cr. K by Rs 30,000; Cr. T by Rs 15,000

General Reserve - Dr 45000

Profit and Loss A/c Dr 45000

To J's Capital A/c 45000

To K's Capital A/c 30000

To T's Capital A/c 15000

(old ratio = 3:2:1)
Hence, the correct option is 3.

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