Question 07 Chapter 4 of +2-Part-1
7. (Profit and loss account not closed) X and Y are partners in 4:1 ratio. They had Rs.40,000 in profit and loss a/c. Their future ratio will be 2:3. They decided not to close the profit and loss account. You are required to pass necessary adjustment entry.
The solution of Question 07 Chapter 4 of +2 Part-1: –
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| Y’s Capital A/c | Dr. | 16,000 | |||
| To X’s Capital A/c | 16,000 | ||||
| (Being profit and loss adjusted through capital A/c) | |||||
Working Notes: –
| Old Ratio of X and Y | = | 4: 1 |
| New Ratio of X and Y, | = | 2 : 3 |
Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old Ratio – New Ratio
| X’s Sacrificing/Gaining Share | = | 4 | – | 2 |
| 5 | 5 |
| = | 4 – 2 | |
| 5 |
| = | 2 | (Sacrifice) | |
| 5 |
| Y’s Sacrificing/Gaining Share | = | 1 | – | 3 |
| 5 | 5 |
| = | 1 – 3 | |
| 5 |
| = | -2 | (Gain) | |
| 5 |
Adjustment of Profit and loss:
| Amount of profit & loss Credited to X’s Capital | = | 40,000 | X | 2 |
| 5 | ||||
| = | 16,000 |
| Amount of profit & loss debited to Y’s Capital | = | 40,000 | X | 2 |
| 5 | ||||
| = | 16,000 |
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
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Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
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