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

Question 07 Chapter 4 of +2- Part-

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: – 

 

In the Books of _______________
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

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

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

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

2 Book 1 min - Question 07 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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