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

Question 12 Chapter 4 of +2-Part-1

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:

In the Books of _______________
Date	Particulars		L.F.	Debit	Credit
	Profit & Loss a/c	Dr.		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)

 

(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	A	B	C	D
Share in Profit in old ratio 2:2:1	(Cr.)30,000	(Cr.)30,000	(Cr.)30,000	–
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

 

In the Books of _______________
Date	Particulars		L.F.	Debit	Credit
	D’s Capital A/c	Dr.		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

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