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)P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000?
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)P,Q and R are partners in a firm sharing profits in the ratio of 3:2:...
Journal Entry to Share Future Profits Equally
To adjust the profit sharing ratio from 3:2:1 to equal sharing, a journal entry needs to be made. The partners in the firm are P, Q, and R, and their current profit sharing ratio is 3:2:1. The Profit and Loss Account has a credit balance of ₹ 1,20,000, and there is a General Reserve of ₹ 60,000.
Step 1: Calculate the Total Profit
To determine the amount that needs to be transferred, we need to calculate the total profit available. The credit balance in the Profit and Loss Account is ₹ 1,20,000, and there is a General Reserve of ₹ 60,000.
Total Profit = Credit Balance in Profit and Loss Account + General Reserve
Total Profit = ₹ 1,20,000 + ₹ 60,000
Total Profit = ₹ 1,80,000
Step 2: Calculate the Amount to be Transferred
Since the partners have decided to share future profits equally, the total profit needs to be divided equally among them. Therefore, the amount to be transferred to each partner's capital account can be calculated as follows:
Amount to be Transferred to each Partner = Total Profit / Number of Partners
Amount to be Transferred to each Partner = ₹ 1,80,000 / 3
Amount to be Transferred to each Partner = ₹ 60,000
Step 3: Journal Entry
The journal entry to adjust the profit sharing ratio and transfer the amount to each partner's capital account is as follows:
Dr P by ₹ 18,000
Cr Q by ₹ 18,000
Explanation:
- Partner P's capital account is debited with ₹ 18,000, representing the transfer of the amount to their capital account.
- Partner Q's capital account is credited with ₹ 18,000, representing the transfer of the amount from the profit to their capital account.
This adjustment equalizes the profit sharing ratio and ensures that future profits will be shared equally among all partners.
Therefore, the correct journal entry is (a) Dr P by ₹ 18,000; Cr Q by ₹ 18,000.
To adjust the profit sharing ratio from 3:2:1 to equal sharing, a journal entry needs to be made. The partners in the firm are P, Q, and R, and their current profit sharing ratio is 3:2:1. The Profit and Loss Account has a credit balance of ₹ 1,20,000, and there is a General Reserve of ₹ 60,000.
Step 1: Calculate the Total Profit
To determine the amount that needs to be transferred, we need to calculate the total profit available. The credit balance in the Profit and Loss Account is ₹ 1,20,000, and there is a General Reserve of ₹ 60,000.
Total Profit = Credit Balance in Profit and Loss Account + General Reserve
Total Profit = ₹ 1,20,000 + ₹ 60,000
Total Profit = ₹ 1,80,000
Step 2: Calculate the Amount to be Transferred
Since the partners have decided to share future profits equally, the total profit needs to be divided equally among them. Therefore, the amount to be transferred to each partner's capital account can be calculated as follows:
Amount to be Transferred to each Partner = Total Profit / Number of Partners
Amount to be Transferred to each Partner = ₹ 1,80,000 / 3
Amount to be Transferred to each Partner = ₹ 60,000
Step 3: Journal Entry
The journal entry to adjust the profit sharing ratio and transfer the amount to each partner's capital account is as follows:
Dr P by ₹ 18,000
Cr Q by ₹ 18,000
Explanation:
- Partner P's capital account is debited with ₹ 18,000, representing the transfer of the amount to their capital account.
- Partner Q's capital account is credited with ₹ 18,000, representing the transfer of the amount from the profit to their capital account.
This adjustment equalizes the profit sharing ratio and ensures that future profits will be shared equally among all partners.
Therefore, the correct journal entry is (a) Dr P by ₹ 18,000; Cr Q by ₹ 18,000.
Community Answer
)P,Q and R are partners in a firm sharing profits in the ratio of 3:2:...
B
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)P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000?
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)P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about )P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for )P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000?.
)P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about )P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for )P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000?.
Solutions for )P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000? in English & in Hindi are available as part of our courses for Commerce.
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)P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000?, a detailed solution for )P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000? has been provided alongside types of )P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000? theory, EduRev gives you an
ample number of questions to practice )P,Q and R 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 ₹ 1,20,000 and General Reserve of ₹60,000. The required journal entry will be: (a) Dr P by ₹18000; Cr Q by ₹ 18000 (b) Cr P by ₹ 90000; Cr Q by ₹60000; Cr R by ₹ 30000 (c) Dr Q by ₹ 18000; Cr R by ₹ 18000 (d) Cr R by ₹ 18000; Dr P by ₹ 18000? tests, examples and also practice Commerce tests.
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