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:
- When the profit and loss account is closed.
- When profit and loss account is not closed and only adjustment entry is passed.
The Content covered in this article:
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 (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- 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
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
