Jai and Bheem were sharing profits in the ratio 4:1. They changed their ratio to 3:2. At the time of reconstitution of the firm , there was a Dr Balance of Profit and Loss a/c of Rs 10,000. How will it be treated?
Answer & explanation
Correct answer: option 2
10,000 * 4/5 = 8,000 Jai
10,000 * 1/5 = 2,000 Bheem