Question 11 Chapter 4 of +2-A - T.S. Grewal 12 Class Part

Question 11 Chapter 4 of +2-A

Table of Contents

The solution of Question 11 Chapter 4 of +2-A

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

11. X and Y are partners in a firm sharing profits and losses in the ratio of 3: 2. With effect from 1st April 2019, they decided to share future profits equally. On the date of the change in the profit-sharing ratio, the Profit and Loss Account showed a credit balance of 1,50,000. Record the necessary journal entry for the distribution of the balance in the Profit and Loss Account immediately before the change in the profit-sharing ratio.

The solution of Question 11 Chapter 4 of +2-A

Adjustment of profit for the year March 2019: –

Amount of Profit Credited to A’s Capital	=	1,50,000	X	3
				5
	=	90,000

Amount of Profit Credited to B’s Capital	=	1,50,000	X	2
				5
	=	60,000

In the Books of _______________
Date	Particulars		L.F.	Debit	Credit
2019
April 1	Profit and Loss A/c	Dr		1,50,000
	To X’s Capital A/c				90,000
	To Y’s Capital A/c				60,000
	(Beingbalance of profit and loss account distributed among the partner in the old ratio.)

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
Chapter No. 3 – Goodwill: Nature and Valuation
Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
Chapter No. 5 – Admission of a Partner
Chapter No. 6 – Retirement/Death of a Partner
Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Chapter No. 8 – Company Accounts – Accounting for Share Capital
Chapter No. 9 – Company Accounts – Issue of Debentures
Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Chapter No. 1 – Financial Statements of a Company
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
Chapter No. 4 – Accounting Ratios
Chapter No. 5 – Cash Flow Statement

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