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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 | |||||
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) | |||||
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 | = | 4 | – | 2 |
5 | 5 |
= | 4 – 2 | |
5 |
= | 2 | (Sacrificing) | |
5 |
Y’s Share Sacrificing/Gaining | = | 1 | – | 3 |
5 | 5 |
= | 1 – 3 | |
5 |
= | -2 | (Gaining) | |
5 |
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Adjustment of Profit and loss:
Amount of profit & loss Credited to X’s Capital | = | 40,000 | 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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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- 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)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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