Amit and Viney are partners in a firm sharing profits and losses in 3:1 ratio-Solution

Q.29. Amit and Viney are partners in a firm sharing profits and losses in 3:1 ratio. On 1.1.2017 they admitted Ranjan as a partner. On Ranjan’s admission the profit and loss account of Amit and Viney showed a debit balance of Rs 40,000. Record necessary journal entry for the treatment of the same.

SOLUTION

Books of Amit and viney

Journal

Date	Particulars		L.F.	Amount (Dr.)	Amount (Cr.)
2017
Jan 1	Amit’s capital A/c	Dr.		30,000
	Viney’s capital A/c	Dr.		10,000
	To Profit and loss A/c				40,000
	(written off firm’s profit and loss A/c’s debit balance)

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