The firm of P, Q and R with profit sharing ratio of 6:3:1, had the balance in General Reserve Account amounting Rs. 1,80,000. S joined as a new partner and the new profit sharing ratio was decided to be 3:3:3:1. Partners decide to keep the General Reserve unchanged in the books of accounts. The effect will be:
A. P will be credited by Rs. 54,000
B. P will be debited by Rs. 54,000
C. P will be credited by Rs. 36.000
D. P will be credited by Rs. 36,000
Answer:A
The firm of P, Q and R with profit sharing ratio of 6:3:1, had the balance in General Reserve Account amounting Rs. 1,80,000. S joined as a new partner and the new profit sharing ratio was decided to be 3:3:3:1. Partners decide to keep the General Reserve unchanged in the books of accounts. The effect will be:
A. P will be credited by Rs. 54,000 B. P will be debited by Rs. 54,000 C. P will be credited by Rs. 36.000 D. P will be credited by Rs. 36,000