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Question 17 Chapter 4 of +2-Part-1
17. (Comprehensive Illustration) X,Y and Z are sharing profits and losses in 5:3:2 ratio. They agreed to share 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 effecting their book figures by passing a single entry.
| Book figures (in Rs.) | |
| General Reserve | 6,000 |
| Profit & Loss account | 24,000 |
| Advertisement Suspense account | 12,000 |
Pass the necessary single adjustment entry.
Journal
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Z's Capital A/c | Dr. | 5,400 | |||
| To X's Capital A/c | 5,400 | ||||
| (Being profits adjusted on account of change in profit ratio) | |||||
Working Notes: -
Old Ratio = 5 : 3 : 2
New Ratio = 2 : 3 : 5
Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old ratio - New ratio
| X’s Share Sacrificing/Gaining | = | 5 | - | 2 |
| 10 | 10 |
| = | 5- 2 |
| 10 |
| = | 3 | (Sacrifice) |
| 10 |
| Y’s Share Sacrificing/Gaining | = | 3 | - | 3 |
| 10 | 10 |
| = | 3 - 3 |
| 10 |
| = | 0 | (Nil) |
| 10 |
| Z’s Share Sacrificing/Gaining | = | 2 | - | 5 |
| 10 | 10 |
| = | 2 - 5 |
| 10 |
| = | -3 | (Gain) |
| 10 |
Calculation of total adjustment profit
| Particulars |
Amount | |
|---|---|---|
| General Reserve | 6,000 | |
| Profit & Loss account (Profit) | 24,000 | |
| Advertisement Suspense account | (-)12,000 | |
| Total adjustment profit | 18,000 | |
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Economics Educator
Mrs. Dilgeerjot Kaur holds a B.Com and M.Com degree and has over 9 years of teaching experience in microeconomics, macroeconomics, and business economics.
This guide covers "Question 17 Chapter 4 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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