Question : J, K and T are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They decided to share future profits equally. The Profit and Loss Account showed a Credit balance of Rs 45,000 and a General Reserve of Rs 45,000. If these are not to be shown in balance sheet, in the journal entry :
Option 1: Cr. J by RS 15,000: Dr. T by Rs 15,000
Option 2: Dr. J by Rs 15,000; Cr. T by Rs 15,000
Option 3: Cr. J by Rs 45,000; Cr. K by Rs 30,000; Cr. T by Rs 15,000
Option 4: Cr. J by Rs 30,000; Cr. K by Rs 30,000; Cr. T by Rs 30,000
Correct Answer: Cr. J by Rs 45,000; Cr. K by Rs 30,000; Cr. T by Rs 15,000
Solution : Answer = Cr. J by Rs 45,000; Cr. K by Rs 30,000; Cr. T by Rs 15,000
General Reserve - Dr 45000
Profit and Loss A/c Dr 45000
To J's Capital A/c 45000
To K's Capital A/c 30000
To T's Capital A/c 15000
(old ratio = 3:2:1) Hence, the correct option is 3.
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