[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.

Here are the solutions of Change in Profit Sharing ratio chapter of DK Goel Class 12 CBSE (2024-25)