A, B, C, D are the partners sharing profit in the ratio of 4:3:2:2. C retires...

 

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A, B, C, D are the partners sharing profit in the ratio of 4:3:2:2. C retires and the remaining partners decided to share future profits in 5:3:2. On the date of C's retirement there was a debit balance of Rs. 30,800 in the profit & loss a/c. Show the necessary journal entries for the treatment of profit & loss a/c balance. A, B, C, D are the partners sharing profit in the ratio of 4:3:2:2. C retires and the remaining partners decided to share future profits in 5:3:2. On the date of C's retirement there was a debit balance of Rs. 30,800 in the profit & loss a/c. Show the necessary journal entries for the treatment of profit & loss a/c balance.

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To adjust the profit and loss account balance on the retirement of partner C the following journal e... View the full answer