Question : The firm of P, Q and R with profit sharing ratio of 3: 6:1, h.ad the balance in General Reserve Account amounting Rs. 90,000. S joined as a new partner and the new profit sharing ratio was decided to be 3 : 3 : 3 : 1. Partners decide to keep the General Reserve unchanged in the books of accounts. The effect will be:
Option 1: Q will be credited by Rs. 27,000
Option 2: R will be debited by Rs. 27,000
Option 3: P will be credited by Rs. 36.000
Option 4: P will be debited by Rs. 36,000
Correct Answer: Q will be credited by Rs. 27,000
Solution : Answer = Q will be credited by Rs. 27,000
O.R - N.R.
P = 3/10 - 3/10 = 0
Q = 6/10 - 3/10 = 3/10 x 90,000 = 27000
R = 1/10 - 3/10 = -2/10 x 90,000 = 18000
S = 1/10 = 1/10 x 90,000 = 9000
R's Capital A/c Dr 18000
S's Capital A/c Dr 9000
To Q's Capital A/c 27000
Hence, the correct option is 1.