X Y and Z are sharing profits and losses in the ratio of 5 3 2 They decide to share future profits ...........

X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2019. They also decide to

record the effect of the following accumulated profits, losses and reserves without affecting their book values by passing a single entry .

                                         Book Values

General Reserve             6,000

Profit and Loss A/c          24,000

Credit

Advertisement                 12,000

Suspense A/c

Pass an Adjustment Entry.