Q.No.60 | Chapter 5 – Admission of Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 60 Chapter 5 of +2-A

60. X and Y were partners in a firm sharing profits and losses in the ratio of 2 : 1. Z was admitted for 1/3rd share in the profits. On the date of Z's admission, the Balance Sheet of X and Y showed General Reserve of 2,50,000 and a credit balance of 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Z's admission.

 

 

The solution of Question 60 Chapter 5 of +2-A: -

 

Date	Particulars		L.F.	Debit	Credit
	General Reserve A/c	Dr		2,50,000
	Profit and Loss A/c	Dr		50,000
	To X’s Capital A/c				2,00,000
	To Y’s Capital A/c				1,00,000
	(Being distributed the balance of general reserve and profit and loss account among the old partners in their old profit sharing ratio i.e. 2:1)

 

Working Note: -

Calculation of distributed the balance of general reserve and profit and loss account

balance of general reserve and profit and loss account	=	2,50,000	+50,000
	=	3,00,000

Old ratio of X & Y= 2 : 1

X will get	=	3,00,000	X	2
				3
	=	2,00,000

Y will get	=	3,00,000	X	1
				3
	=	1,00,000

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication