question_answer

You are required to answer the following questions 9 to 10. A, B and C were partners sharing profits in the ratio of 5:4:3. They decided to change their profit sharing ratio to 2 : 2 : 1 w.e.f. 1st April, 2021. On that date, there was a balance of Rs.3,00,000 in General Reserve and a debit balance of Rs.4,80,000 in the Profit and Loss Account. When they want to distribute the General Reserve, identify the wrong statement:

A) They cannot distribute General Reserve due to loss.

B) A's Capital Account will be credited with Rs. 1,25,000

C) C's Capital Account will be credited with Rs. 75,000

D) B's Capital Account will be Credited with Rs. 1,00,000