Practicing Success
A, B & C were sharing profits & losses in the ratio of 3:2:1. They decided to share profits & losses equally in the future. The general reserve appeared in their books at ₹60,000. Goodwill was valued at ₹1,20,000. The partners do not want to disturb the general reserve. The adjusting entry will be: |
A's capital A/C Dr. ₹1,80,000 A's capital A/C Dr. ₹1,80,000 C's capital A/C Dr. ₹30,000 C's capital A/C Dr. ₹1,80,000 |
C's capital A/C Dr. ₹30,000 |
Old ratio is 3:2:1 |