X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2 . They decided to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2018. They also decided to record the effect of the following accumulated profits,losses and reserves without affecting their book values by passing a single entry.
|
Book Value (Rs.) |
| General Reserve |
6,000 |
| Profit and Loss A/C (Credit) |
24,000 |
| Advertisement Suspense A/c |
12,000 |
Pass an Adjustment Entry.
