[CBSE] DK Goel Q. 38 Change in Profit Sharing Ratio Solutions Class 12 (2026-27)
Solution of Question 38 of Change in Profit sharing ratio DK Goel Class 12 CBSE (2026-27)
Rambha and Urvashi were partners in a firm sharing profits and losses in the ratio of 13: 12. From 1st April, 2024, they decided to share future profits and losses in the ratio of 12: 13.
On this date, their balance sheet showed a debit balance of *2,50,000 in Advertising Suspense Account and a balance of ₹5,00,000 in Contingency Reserve.
Partners decided to write off the balance of the Advertising Suspense Account but decided not to distribute Contigency Reserve.
Pass necessary journal entries for the above transactions on the reconstitution of the firm. Show your working clearly.
Solution:
