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

Question 12 Chapter 4 of +2- Part-
Q-12 - CH-4 - Usha +2 Book 2018 - Solution

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Question 12 Chapter 4 of +2-Part-1

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12. (Different Cases) A B and C are partners in 2:2:1 ratio. They admitted D into the firm for 1/5 share. They had Rs.60,000 in profit and loss account. Record the necessary journal entries in the books of the firm under the following circumstances:

  1. When the profit and loss account is closed.
  2. When profit and loss account is not closed and only adjustment entry is passed.

The solution of Question 12 Chapter 4 of +2 Part-1: – 

(a) When the profit and loss account is closed:

Journal
DateParticulars
L.F.DebitCredit
      
 Profit & Loss a/cDr. 60,000 
 To A’s Capital A/c   24,000
 To B’s Capital A/c   24,000
 To C’s Capital A/c   12,000
 (Being profit distributed in 2:2:1 ratio)   
     

 

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(b) When profit and loss account is not closed and only adjustment entry is passed.

Distribution of profit and general reserve or reconstitution of partnership  
Particulars
ABCD
     
Share in Profit in old ratio 2:2:1240002400012000
Share in Profit in new ratio 8:8:4:5(Cr.)19,200(Cr.)19,200(Cr.)9,600(Cr.)12,000
Adjustment(Cr.)4,800(Cr.)4,800(Cr.)2,400(Cr.)12,000

 

Journal
DateParticulars
L.F.DebitCredit
      
 D’s Capital A/cDr. 12,000 
 To A’s Capital A/c   4,800
 To B’s Capital A/c   4,800
 To C’s Capital A/c   2,400
 (Being adjustment entry passed)   
     

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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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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