Question

Ram and Shyam are equal partners in a partnership. They decided to change their ratio as 2:1. On that date, general reserve appeared in the books as 30,000. What amount of reserve will be transferred to Shyam's Capital Account?(A) 5,000
(B) 10,000
(C) 15,000
(D)20,000 ​

Answer 1

Previously, Ram and Shyam each had 15,000 of the reserve fund.

To change the ratio to 2:1, Ram needs to transfer 5,000 to Shyam's Capital Account.

The answer is: (A) 5,000