Q.No.22 | Chapter 4 – Change in Profit-Sharing Ratio Among the Exiting Partners | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

1. Value of stock to be reduced to 1,25,000.
2. Value of machinery to be decreased by 10%.
3. Land and Building to be appreciated by 62,000.
4. Provision for Doubtful Debts to be made @ 5% on Sundry Debtors.
5. Aakash was to carry out reconstitution of the firm at a remuneration of 10,000.
   Pass necessary Journal entries to give effect to the above.

The solution of Question 22 Chapter 4 of +2-A

In the Books of _______________

Date	Particulars		L.F.	Debit	Credit
2019
April 1	General Reserve A/c*1	Dr		90,000
	To Ashish’s Capital A/c				30,000
	To Akash’s Capital A/c				30,000
	To Amit’s Capital A/c				30,000
	(Being General Reserve Distributed among partners)
	Ashish’s Capital A/c	Dr		2,000
	Akash’s Capital A/c	Dr		2,000
	Amit’s Capital A/c	Dr		2,000
	To Advertisement Suspense A/c*2				6,000
	(Being Advertisement Suspense adjusted)
	Revaluation A/c	Dr		54,000
	To Stock A/c				15,000
	To Machinery A/c				25,000
	To Provision for Doubtful Debts A/c				4,000
	To Akash’s Capital A/c				10,000
	(Being Increase in the value of the assets and decrease in the values of liabilities are transferred to revaluation a/c)
	Land & Building A/c	Dr		62,000
	To Revaluation A/c				66,000
	Being Increase in the value of the assets and decrease in the values of liabilities are transferred to revaluation a/c)
	Revaluation A/c*3	Dr		8,000
	To Ashish’s Capital A/c				2,666
	To Akash’s Capital A/c				2,666
	To Amit’s Capital A/c				2,666
	(Being Profit on revaluation of assets and liabilities are Distributed among partners)

Working Note : 

WN *1 Calculation of Adjustment of General Reserve: -

Amount to be Credited to Ashish’s Capital	=	90,000	X	1
				3
	=	30,000

 

Amount to be Credited to Akash’s Capital	=	90,000	X	1
				3
	=	30,000

 

Amount to be Credited to Amit’s Capital	=	90,000	X	1
				3
	=	30,000

 

WN *2 Calculation of Adjustment of Advertisement Suspense: -

 

Amount to be Credited to Ashish’s Capital	=	6,000	X	1
				3
	=	2,000

 

Amount to be Debited to Akash’s Capital	=	6,000	X	1
				3
	=	2,000

 

Amount to be Credited to Ashish’s Capital	=	6,000	X	1
				3
	=	2,000

 

WN *3 Calculation of Adjustment of General Reserve: -

Amount to be Credited to Ashish’s Capital	=	8,000	X	1
				3
	=	2,666

 

Amount to be Debited to Akash’s Capital	=	8,000	X	1
				3
	=	2,666

 

Amount to be Credited to Amit’s Capital	=	8,000	X	1
				3
	=	2,666

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

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