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Question 07 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 07 Chapter 4 of +2- Part-
Q-7 - CH-4 - Usha +2 Book 2018 - Solution

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Question 07 Chapter 4 of +2-Part-1

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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
DateParticulars
L.F.DebitCredit
      
 Y’s Capital A/cDr. 16,000 
 To X’s Capital A/c   16,000
 (Being profit and loss adjusted)   
     

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 Share Sacrificing/Gaining=42
55
 =4 – 2
 5
 =2(Sacrificing)
 5
Y’s Share Sacrificing/Gaining=13
55
 =1 – 3
 5
 =-2(Gaining)
 5

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Adjustment of Profit and loss:

Amount of profit & loss Credited to X’s Capital=40,000X2
5
     
 =16,000  

 

Amount of profit & loss debited to Y’s Capital=40,000X2
5
     
 =16,000  

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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