Question 12 Chapter 4 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 12 Chapter 4 of +2-A

Question 12 Chapter 4 of +2-A

12. A and B are partners in a firm sharing profits in the ratio of 4 : 1. They
decided to share future profits in the ratio of 3 : 2 w.e.f. 1st April, 2019. On that day, Profit and Loss Account showed a debit balance of 1,00,000. Pass Journal entry to give effect to the above.

The solution of Question 12 Chapter 4 of +2-A

 

Adjustment of profit for the year March 2019: –

Amount of Profit Debited to A’s Capital = 1,00,000 X 4
5
  = 80,000    

 

Amount of Profit Credited to B’s Capital = 1,00,000 X 1
5
  = 20,000    



In the Books of _______________
Date Particulars
L.F. Debit Credit
2019          
April 1 A’s Capital A/c Dr   80,000  
  B’s Capital A/c Dr   20,000  
  To Profit and Loss A/c       1,00,000
  (Being balance 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)

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

 

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

2 Book 1 min - Question 12 Chapter 4 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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