[CBSE] DK Goel Q. 23 Change in Profit Sharing Ratio Solutions Class 12 (2024-25)

Solution of Question 23 of Change in Profit sharing ratio DK Goel Class 12 CBSE (2024-25)

A and B are partners in a firm sharing profits in the ratio of 3 : 2. They decided to share profits in the ratio of 3 : 4 w.e.f., April 1, 2024. On that date there was a credit balance of ₹ 70,000 in their profit and Loss Account. Pass the necessary journal entry assuming that partners decide to distribute the profits.

[Ans. Credit A’s Capital A/c by ₹ 42,000 and B’s Capital A/c by ₹ 28,000.]

Solution:-

Note:- In the absence of any additional information, the accumulated profits and losses are distributed to the old partners in their old profit sharing ratio.