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.
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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
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