Question 9 Chapter 4 of Class 12 Part – 1 Usha Publication

Question 9 Chapter 4 of Class 12 Part – 1 Usha Publication

9. (Profit and loss account/ Reserve are not closed) A, B and C are partners in 2 : 3 : 3 ratio. On 31st December they had Rs. 80,000 in Profit and Loss account and Rs.24,000 in general reserve. They decided to share profits in future in 2 : 2 : 1 ratio.
You are required to pass entry in the books without closing the existing accounts.

The solution of Question 9 Chapter 4 of Class 12 Part – 1 Usha Publication: -

?si=FaY2SOr9bviFMV5E&t=422

Distribution of profit and general reserve or reconstitution of partnership
Particulars	A	B	C
Profit distributed in the old ratio (2:3:3)	(Cr.)20,000	(Cr.)30,000	(Cr.)30,000
General Reserve distributed in the old ratio	(Cr.)6,000	(Cr.)9,000	(Cr.)9,000
Total	(Cr.)26,000	(Cr.)39,000	(Cr.)39,000
Recreating Profit and loss a/c and G.R.
Profit distributed in a new ratio (2:2:1)	32,000	(Cr.)32,000	(Cr.)16,000
General Reserve distributed in new ratio	9,600	(Cr.) 9,600	(Cr.) 4,800
Total	41,600	(Cr.)41,600	(Cr.)20,800
Adjustments required in capital accounts	15,600	(Cr.)2,600	(Cr.)18,200

Journal

Date	Particulars		L.F.	Debit	Credit
	A’s Capital A/c	Dr.		15,600
	B’s Capital A/c	Dr.		2,600
	To C’s Capital A/c				18,200
	(Being P & L a/c and G.R. adjusted in capital a/cs on change in the ratio)

Thanks, Please Like and share with your friends  

Comment if you have any questions.