Question 11 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 11 Chapter 4 of +2- Part-

Question 11 Chapter 4 of +2-Part-1

11. (Profit and loss account/ General Reserve are given) A B and C are partners in 2:3:3 ratio. On 31st December they had Rs. 80,000 in Profit and Loss account and Rs.24,000 in general reserve. They decided to share profits in future in 2:2:1 ratio.
You are required to pass entry in the books without closing the existing accounts.

 

The solution of Question 11 Chapter 4 of +2 Part-1: – 

 

Distribution of profit and general reserve or reconstitution of partnership
Particulars
A B C
       
Profit distributed in the old ratio (2:3:3) (Cr.)20,000 (Cr.)30,000 (Cr.)30,000
General Reserve distributed in the old ratio (Cr.)6,000 (Cr.)9,000 (Cr.)9,000
Total (Cr.)26,000 (Cr.)39,000 (Cr.)39,000
Recreating Profit and loss a/c and G.R.      
Profit distributed in a new ratio (2:2:1) (Cr.)32,000 (Cr.)32,000 (Cr.)16,000
General Reserve distributed in new ratio (Cr.) 9,600 (Cr.) 9,600 (Cr.) 4,800
Total (Cr.)41,600 (Cr.)41,600 (Cr.)20,800
Adjustments required in capital accounts (Cr.)15,600 (Cr.)2,600 (Cr.)18,200

 

In the Books of _______________
Date Particulars
L.F. Debit Credit
           
  A’s Capital A/c Dr.   15,600  
  B’s Capital A/c Dr.   2,600  
  To C’s Capital A/c       18,200
  (Being P & L a/c and G.R. adjusted in capital a/cs on change in the ratio)      
         

 

 

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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

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

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 (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis 

Chapter No. 4 – Cash Flow Statement

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

2 Book 1 min - Question 11 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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