[CBSE] Q. 14 Change in profit sharing ratio Solution TS Grewal Class 12 (2023-24)

Solution to Question number 14 of the Change in Profit sharing ratio chapter 4 of TS Grewal Book class 12 CBSE 2023-24 Edition?

Nitya and Anand are partners in a firm sharing profits and losses equally. With effect from 1st April 2023, they decided to share future profits in the ratio of 3 : 2. On the date of the change in the profit sharing ratio, the Profit & Loss Account had a credit balance of ₹ 1,50,000. Pass the necessary Journal entry for the distribution of the balance in the Profit & Loss Account before the change in the profit-sharing ratio.

[Ans.: Dr. Profit & Los A/c by ₹ 1,50,000; Cr. Nitya’s Capital A/c by ₹ 75,000 and Anand’s Capital A/c by ₹ 75,000.]

Solution:-

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