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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
    Vinod and Yuvraj were partners in a firm sharing profits in 3:2 ratio. From 1st March, 2021 they decided to change it to 3:1. For this purpose the goodwill of the firm was valued at Rs. 1,20,000. Journal entry for the above transaction will be:

    A) Yuvraj's Capital A/c Dr 20,000 and Vinod's Capital A/c Cr. 20,000

    B) Yuvraj's Capital A/c Dr 18,000 and Vinod's Capital A/c Cr. 18,000

    C) Vinod's Capital A/c Dr.20,000 and Yuvraj's Capital A/c Cr 20,000

    D) Vinod's Capital A/c Dr. 18,000 and Yuvraj' s Capital A/c Cr 18,000

    Correct Answer: D

    Solution :

    Vinod's Capital A/c Dr. 18,000 and Yuvraj' s Capital A/c Cr 18,000


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