Question : M, N and O are partners in a firm sharing profits in the ratio equally Their Balance Sheet as at 31-3-2019 showed a debit balance of Profit & Loss A/c 90,000. From 1-4-2019 they will share profits 4:3:2. In the necessary journal entry to give effect to the above arrangement when M, N and O decided not to close the Profit & Loss Account:
Option 1: Dr. M by Rs 10,000; Cr. O by Rs 10,000
Option 2: Cr. M by Rs 10,000; Dr. O by Rs 10,000
Option 3: Dr. M by Rs 20,000; Cr. O by Rs 20,000
Option 4: Cr. M by Rs 20,000; Dr. O by Rs 20,000
Correct Answer: Dr. M by Rs 10,000; Cr. O by Rs 10,000
Solution : Answer = Dr. M by Rs 10,000; Cr. O by Rs 10,000
Sacrificing Ratio = O.R.- N.R.
M = 1/3 - 4/9 = 3-4/9 = -1/9 x 90,000 = 10,000
N = 1/3 -3/9 = 3-3/9 = 0
O = 1/3 - 2/9 = 3-2/9 = 1/9 x 90,000 = 10,000
M's Capital A/c Dr 10,000
To O's Capital A/c 10,000 Hence, the correct option is 1.
Question : A, B and C are partners in a firm sharing profits in the ratio of equally They decided to share profits 4:3:1 w.e.f. 1st April, 2019. On that date the Profit and Loss Account showed the credit balance of Rs 48,000. Instead of closing the Profit and Loss Account, it was
Question : A, B and C are partner sharing profits in the ratio of equally On 1-4-2020 they decided to share the profits 2:4:6. On the date there was a credit balance of Rs 1,00,000 in their Profit and Loss Account and a balance of Rs 2,00,000 in General Reserve Account.
Question : Aman and Varun are partners sharing profits in the ratio of equally. Their Balance Sheet showed a balance of Rs 62,000 in the General Reserve Account and a debit balance of 20,000 in the Profit and Loss Account. They now decided to share the future profits 4:3.
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
Question : A, B and C were partners sharing profit and losses in the ratio of 7:3:2. From 1st April 2020 they decided to share profit and losses in the ratio of 8:4:3. Goodwill is Rs 2,40,000. In adjustment entry for goodwill
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile