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  3. 12th Class
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  5. Change in Profit Sharing Ratio Among Existing Partner

12th Class Accountancy Change in Profit Sharing Ratio Among Existing Partner Question Bank MCQs - Change in Profit-Sharing Ratio Among Existing Partners

  • question_answer
    X, Y and Z are sharing profits in the ratio of 1:1:1. They decided to share profits in the ratio of 2:3:5. On this date balance sheet of the firm showed a balance of Rs.60,000 in Contingency Reserve. Z Capital Account will be:

    A) No effect because partners cannot distribute Contingency Reserve

    B) Debit by Rs. 20,000

    C) Credit by 12,000

    D) Credit by 20,000

    Correct Answer: D

    Solution :

    Credit by 20,000


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